A store offers a loan of $900 to buy a computer. The terms of the loan are for 5% simple interest and equal monthly payments for three years. What is the monthly payment?

Question

Amiya Pennington

Mathematics

28 January, 22:58

A store offers a loan of $900 to buy a computer. The terms of the loan are for 5% simple interest and equal monthly payments for three years. What is the monthly payment?

+5

Answers (1)

Know the Answer?

Aiyana Alvarez · Answer 1

Interest Amount (I) = P x r x t = 900 x 5% x 3 = 135

So total amount to be paid over 3 years = Principal Amount + Interest Amount = 135 + 900 = 1035 (over 3 years = 36 months) = 1035 / 36 = $28.75 per month