Question

Jacey gets a $500

loan at a simple
annual interest
rate of 5%. She will
pay back the loan
in equal monthly
payments over one
year. How much is
each payment?​

Answer 1

She will have to pay 43.75$ monthly to fully pay the loan back in one year.

Explanation:

5% of 500$ is 25 dollars.

add 500 + 25 = 525

divide 525 / 12 to represent the months of a year. = 43.75$