Ask Question
22 July, 02:55

Susan took out a personal loan for $3,500 at an interest rate of 13% compounded monthly. She made arrangements to pay the loan off in 3 years. What will her monthly payment be? a. $99.34 b. $105.32 c. $117.93 d. $156.60

+2
Answers (2)
  1. 22 July, 03:18
    0
    For the answer to the question above,

    This is a present value of an ordinary annuity question.

    It is present value because you have a present value - the future value will be 0.

    I assume the interest rate is 13% per annum.

    A=3500

    i=0.13/12=0.01083 repeater

    1+i=1.01083 repeater

    n=3*12=36

    You have to find R

    formula is

    A = R x (1 - (1+i) ^-n) / i

    Just substitute the given to this formula and you'll get the answer.
  2. 22 July, 03:25
    0
    The answer is c. $117.93
Know the Answer?