Question

Patrick will borrow $4300 at 11.5% APR. He will pay it back over 5 years.

What will his monthly payment be? (Use the table.)


$94.56


$96.79


$123.21


$141.81

Answer 1

Explanation:

Equal installments can be found by

I=P((r-1)/(r^n-1)+(r-1)) (note monthly rate is r/12, r is about 1.00958)

I=4300((1.00958-1)/(1.00958^60-1)+0.00958)

I=$94.56

Answer 2

94.56

Explanation:

because 94,56 x 11.5 x 5 =4300