Brendon walsh wants to borrow $30,000 from the bank. the interest rate is 6% and the term is for 5 years. what is the monthly payment amount? $360 $530 $1,800 $6,360

Problem

What is the monthly payment amount? $360 $530 $1,800 $6,360

Given facts

The amount to be borrowed $30,000

Interest rate is 6%

the term of payment is 5 years

Mathematical operation

Division, addition and multiplication

Solution and Answer

1. Get the interest

convert interest rate to decimal 6%=0.06

$30,000 x 0.06 = $ 1800

2. Add the borrowed amount and interest to get the total amount to be paid by Brendon.

$30,000 + $1800 = $38,000

3. The payment would be done on a monthly basis for 5 years.

5 years = 60 months

4. Divide the total borrowed payment to the number of months. To get the amount of the monthly payment.

$38,000/60

5. The monthly payment.

Answer $530