Question

Morris borrowed $9,000 from a credit union at 13% simple interest for 42 months. What were his money installment payments (to the nearest whole cent)?$311.79 per month$307.89 per month$297.58 per month$377.12 per monthNone of these choices are correct.

Answer 1

Now the total interest for 42 months will be:-

`\begin{gathered} S\mathrm{}I\mathrm{}=(9000*13*7)/(200) \\ =(90*13*7)/(2) \\ =45*13*17 \\ =4095 \end{gathered}`

So the total amount he has to pay after 42 months will be = 9000+4095

= $13095

So

`\begin{gathered} 42\text{ months = \$13095} \\ 1\text{ month =}(13095)/(42) \\ =311.79 \end{gathered}`

So his monthly installment will be $ 311.79

So $ 311.79 is the correct option.