Problema Solution
What is the equal monthly payments to be made if a loan is to be paid off in 60 months and the person borrowed $18,000 with interest rate of 2% per month (Round to nearest cent)
Answer provided by our tutors
1st month: the principal and interest is 18000*1.02=18360
and then you pay $517.82
2nd month: the principal and interest is (18360-517.82)*1.02=17842.18*1.02=18199.02
and then you pay $517.82
3rd month: (18199.02-517.82)*1.02=17681.2*1.02=18034.82
and then you pay $517.82
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60th month you will complete the repayment
The calculation is very complicated
you need to use a specialized calculator
the equal monthly payment is $517.82
all your repayment is $31069.20