Solve the problem using the formula below:

Interest = 2yc / m (n+1)

Given a note for $1,000, with 24 equal monthly payments, and a 7.5% true annual interest rate is charged. What is the principal plus interest payment?

The interest payment

Interest = 2yc / m (n+1)

0.075 = (2*12*c) / (1000 (24+1))

Solve for c

0.075 = (24*c) / (1000*25)

0.075=24c/25000

Cross multiplication

0.075*25000=24c

1875=24c

Divide each side by 24

C=1,875:24

C=78.125 per month

The amount of principle payment is

P=1,000:24

P=41.67 per month

The principal plus interest payment is

78.13+41.67=119.8 per month