Question

8. You are applying for a loan through Lending Tree and are contemplating the following terms: $3000 loan at 5.6% interest to be paid monthly for 3 years. What is the estimated monthly payment?

Answer 1

`\begin{gathered} \text{ The total amount we will pay is } \\ 3000(1+0.056)=3000\cdot1.056=3168 \\ \text{the total amount we will pay is \$3168} \end{gathered}`
`\begin{gathered} \text{ For 3 years (36 months)},\text{ the monthly pay is} \\ (3186)/(36)=88 \\ \\ \text{ The estimated monthly payment is \$88} \end{gathered}`