You take out an installment loan of $2700.00 for 30 months at 8 %. The title of a monthly payment table is "Monthly Payment on a Simple Interest Installment Loan of $100" If you use 30 months and 8% interest, you get the figure $3.69 in this table. Calculate the monthly payment.

Question

Abril Wallace

Mathematics

9 January, 08:46

You take out an installment loan of $2700.00 for 30 months at 8 %. The title of a monthly payment table is "Monthly Payment on a Simple Interest Installment Loan of $100" If you use 30 months and 8% interest, you get the figure $3.69 in this table. Calculate the monthly payment.

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Akira Moss · Answer 1

From what you wrote, according to your table:

For every $100 you borrow at 8%, you pay $3.69 each month for 30 months.

So, you pay back a total of 3.69 x 30 = $110.70

But, if you borrow 2700, using your table you find that:

2700 / 100 = 27

27 * 3.69 = 99.63

So you pay back 99.63 x 30 = $ 2988.90