Nikki borrowed $500 at 9% interest for 12 months under a monthly

installment plan. She must pay $8.7453 per $100 each month for 12
months. How much is her monthly installment payment?

Multiply $8.7453 by 5. They already told you the rate per $100 borrowed.

You do not have to use the interest rate in an amortization formula.

Well, Nikki seems to have borrowed quite a sum of money. Let's see how much she'll be paying each month.

If she borrowed $500, the first step is to find out how many $100s are in $500. It's simple math, really. $500 divided by $100 equals 5.

Now, since Nikki has to pay $8.7453 per each $100, we can multiply that by 5 (the number of $100s).

$8.7453 multiplied by 5 equals $43.7265.

So, Nikki's monthly installment payment will be approximately $43.73. And that's no laughing matter!

To find Nikki's monthly installment payment, we need to calculate the total amount she needs to pay back over 12 months, including the interest.

First, we calculate the interest amount by multiplying the borrowed amount by the interest rate:

Interest = $500 * 9% = $45

Next, we add the interest to the borrowed amount to find the total amount she needs to pay back:

Total amount = $500 + $45 = $545

To calculate the monthly installment payment, we divide the total amount by the number of months:

Monthly installment payment = Total amount / Number of months
= $545 / 12
≈ $45.417

Therefore, Nikki's monthly installment payment is approximately $45.42.

To determine Nikki's monthly installment payment, we need to calculate the total amount she borrowed, including the interest.

First, we need to calculate the interest amount. The formula for calculating simple interest is:

Interest = Principal * Rate * Time

In this case, the principal (P) is $500, the interest rate (R) is 9% (0.09 as a decimal), and the time (T) is 12 months. Plugging in these values, we can calculate the interest:

Interest = $500 * 0.09 * 12 = $540

Now, we need to add the interest to the principal to find the total amount borrowed:

Total amount borrowed = Principal + Interest = $500 + $540 = $1040

Next, we need to calculate Nikki's monthly installment payment. The installment plan states that she must pay $8.7453 per $100 each month. Since Nikki borrowed $1040, we can calculate her monthly payment:

Monthly payment = ($1040 / $100) * $8.7453 = $108.16

Therefore, Nikki's monthly installment payment is approximately $108.16.