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27 August, 04:48

A college student borrow $3,000 for 9 months to pay for a semester of school. If the interest is $185.63, find the monthly payment

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  1. 27 August, 05:00
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    Total interest on the loan = 185.63

    Total principal of the loan = 3,000

    Total interest + principal = 3,000 + 185.63

    Total future value of the loan = 3,185.63

    The tenor of the loan = 9 months

    Monthly payment = Total future value of loan / number of months

    Monthly payment = 3,185.63/9 = 353.9588

    Monthly payment = $353.96 (Rounded to nearest cent)
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