Question

Trey is taking out a loan for $85000. It is a 20-year loan with an APR of 5.85% what will his monthly payment be?

Answer 1

$768.54 (Approximate)

Explanation:

Trey is taking out a loan for $85000. It is a 20-year loan with an APR of 5.85%.

Therefore, if we consider the interest rate is simple interest, then using the simple interest formula, the sum will become after 20 years

`85000(1 + (5.85 * 20)/(100)) = 184450` dollars.

Therefore, the monthly payment for the loan will be
`(184450)/(20 * 12) = 768.54` dollars. (Answer)