A college student borrow $3,000 for 9 months to pay for a semester of school. If the interest is $185.63, find the monthly payment

Question

Mathematics

Andrew Walton

3 February, 14:25

A college student borrow $3,000 for 9 months to pay for a semester of school. If the interest is $185.63, find the monthly payment

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Palmer · Answer 1

Total interest on the loan = 185.63

Total principal of the loan = 3,000

Total interest + principal = 3,000 + 185.63

Total future value of the loan = 3,185.63

The tenor of the loan = 9 months

Monthly payment = Total future value of loan / number of months

Monthly payment = 3,185.63/9 = 353.9588

Monthly payment = $353.96 (Rounded to nearest cent)