Question

Mr. John borrows $10,000 to remodel his kitchen; he borrows the money for 5 years, and has to pay a simple interest rate of 4.5% per year.

A) Since there are 12 months in the year, how many total months does Mr. John have to pay back this loan?

B) What will be the amount of Mr. john's monthly payment to the bank?

Answer 1

A) 60

B)450

Explanation:

A) you multiply 5x12

B)10,000(the whole) divided by 100(the 4.5% comes from 100%)is 100.Now instead of trying to divide the missing number,(you cant cause its not there) you instead multiply.You multiply 4.5% by the hundred that you got earlier.