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If a family borrows $23,574 for an addition to their home, and the loan is to be paid off in monthly payments over a period of 10 years, how much should each payment be? (Interest has been included in the total amount borrowed.)

User TomNorway
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1 Answer

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We have been given the following information:

Total amount borrowed (Including interest) =$23,574

Number of years = 10 years

Step 1: Find the amount paid per year


\text{Amount paid per year=}\frac{\text{ \$23,574}}{10}=\text{ \$2357.4}

Step 2: Find the amount paid per month.

Since there are 12 months in a year


\text{Amount paid per month=}\frac{\text{ \$2357.4}}{12}=\text{ \$196.45}

User Mayank Garg
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