Ask Question
6 October, 16:33

Solve the problem using the formula below:

Interest = 2yc / m (n+1)

Given a note for $1,000, with 24 equal monthly payments, and a 7.5% true annual interest rate is charged. What is the principal plus interest payment?

+2
Answers (1)
  1. 6 October, 18:10
    0
    The interest payment

    Interest = 2yc / m (n+1)

    0.075 = (2*12*c) / (1000 (24+1))

    Solve for c

    0.075 = (24*c) / (1000*25)

    0.075=24c/25000

    Cross multiplication

    0.075*25000=24c

    1875=24c

    Divide each side by 24

    C=1,875:24

    C=78.125 per month

    The amount of principle payment is

    P=1,000:24

    P=41.67 per month

    The principal plus interest payment is

    78.13+41.67=119.8 per month
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Solve the problem using the formula below: Interest = 2yc / m (n+1) Given a note for $1,000, with 24 equal monthly payments, and a 7.5% ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers