Question

Bess burrowed $3000 from her bank for 1 year and paid 5.25% interest. What would the monthly payments be if there werr 12 equal payments?

Answer 1

Bess burrowed $3000 from her bank for 1 year and paid 5.25% interest. What would the monthly payments be if there werr 12 equal payments?​

step 1

we know that

5.25%=5.25/100=0.0525

Multiply the amount borrowed by the interest in decimal form

so

3,000*0.0525=$157.7 -----> total interest

step 2

total amount=3,000+157.7=$3,157.70

step 3

Divide the total amount by 12

3,157.7/12=$263.14

therefore

the answer is $263.14