Julie asks you for a loan of $1200. she promises to pay everything back with interest in 2 years, and you decide that the highest interest you can charge a friend is probably 5%. how much do you ask julie to pay you each month in order for her to have the loan paid off in 2 years? round to the nearest two decimal places.

Question

Seamus Weeks

Mathematics

6 May, 20:52

Julie asks you for a loan of $1200. she promises to pay everything back with interest in 2 years, and you decide that the highest interest you can charge a friend is probably 5%. how much do you ask julie to pay you each month in order for her to have the loan paid off in 2 years? round to the nearest two decimal places.

+5

Answers (1)

Know the Answer?

Johnathan Tran · Answer 1

1 year = 12 months

$1200/2 years

$1200 / 24 months

$50/1 month

add the interest which would be 5% of 50

50*0.05=2.5

50+2.5=52.5

She would pay you $52.50 per month