Question

Suppose Elroy wants to get a loan for $ 7 , 000 at an interest rate of 6 % for 2 years to be paid back in 24 monthly installments. Calculate this loan using simple interest. What is the amount of the monthly payments? Round the answer to the nearest cent (hundredth).

Answer 1

$326.67

Explanation:

Amount of Interest=7000(6%)(2)=$840

Monthly installment=7000+840/12=$326.67 (nearest hundredth)