Use the add-on method of calculating interest to find the total interest and the monthly payment of a $1300 loan for 18 months at 8.3%. The total interest is S. (Type an integer or decimal rounded to the nearest cent as needed.) The monthly payment is - (Type an integer or decimal rounded to the nearest cent as needed.)

Question

Mathematics

Sage Kane

3 March, 12:41

Use the add-on method of calculating interest to find the total interest and the monthly payment of a $1300 loan for 18 months at 8.3%. The total interest is S. (Type an integer or decimal rounded to the nearest cent as needed.) The monthly payment is - (Type an integer or decimal rounded to the nearest cent as needed.)

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Townsend · Answer 1

The total interest amount is $161.928 approximately.

The monthly payment is $8122 approximately.

Step-by-step explanation:

Consider the provided information.

the monthly payment of a $1300 loan for 18 months at 8.3%.

Thus the loan amount is $1300 with No. of monthly installments is 18 and the interest rate per month is 8.3%/12 = 0.00692

Total Interest amount = Loan amount * Interest rate per month * No. of monthly installments

Total Interest amount = 1300 * 0.00692 * 18

= $161.928

Monthly Payment = (Loan principal + Total Interest) / No. of monthly installments

Monthly Payment = (1300 + 161.928) / 18

= $81.22