Question

If $10,000 is borrowed at an APR of 18%, for a period of 5 years and payments are made monthly, what will be the monthly payment?

Answer 1

$381.29

Explanation:

10000(1+.18)5

10000(1.18)5

Amount due $22877.58

since 5 years x 12 months =60 months

monthly payment is 22877.58÷60 = $381.29