Jerry goes to the bank and borrows $9,000 for farm equipment. The simple yearly interest is 9.5% and he pays off the loan over a

Question

Nana76 [90]

2 years ago

6

Jerry goes to the bank and borrows $9,000 for farm equipment. The simple yearly interest is 9.5% and he pays off the loan over a

period of 2 years with 24 equal monthly payments. What’s Jerry’s monthly payment

Mathematics

1 answer:

creativ13 [48] · Answer 1 · 2023-09-02T01:25:50+03:00

To solve this problem you must appply the formula for simple interest, which is:

I = RxPxN

I: Simple Interest.
R:Rate (9.5$/100=0.095/12).
P: The principal (P=$9000).
N:number of periods (N=24).

When you substitute these values into the formula, you obtain:

I=RxPxN
I=(0.095/12)x9000x24
I=$1710

Therefore, the monthly payment is:

$1710/24=$71.25

What is Jerry's monthly payment?

The answer is: Jerry's monthly payment is $71.25