Question

Angela's bank gave her a -year add-on interest loan for $7,220 to pay for new equipment for her antiques restoration business. The annual interest rate is 9.06%. How much interest will she pay? What are her monthly payments?

Answer 1

The loan value is $7220 and the annual interest rate is 9.06%

Therefore, the interest value is (9.06/100)*7220 = 0.0906*7220 = $654.13

The monthly payment is (7220 + 654.13)/12 = 7874.13/12 = $656.18