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29 October, 16:39

Item 18 A music company offers a loan to buy a drum set for $1500. The simple interest is 11.8% and the loan will be paid in equal monthly payments for 2 years. What is the monthly payment?

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  1. 29 October, 19:19
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    I think you have to first find out the the total payment with the interest money which is (1500x11.8%) x2 + 1500 = $1854. So the monthly payment for 2 years will be

    $1854/24 (2years=24months) = $77.3
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