Posted by **nathan ** on Wednesday, April 14, 2010 at 2:12am.

sherman jones borrows $675 from the REGAL LOAN COMPANY.he agrees to repay the loan in 15 months

the interest rate is 23%

how much money must sherman pay ???

- borrowing money -
**drwls**, Wednesday, April 14, 2010 at 4:33am
Is it repaid in equal montly amounts?

Loan and credit card companies tend to like high interest rates with low minimum monthly payments, to maximize their interest earnings.

If he waits until the end of 15 months to repay, the amount due is 675[1 + (15/12)*0.23]= $882.00

If he pays off in equal monthly amounts of $52.21, the loan will be fully paid in 15 months and the total amoount paid will be $783.15

There is a formula for that, but I was lazy and used an online amortization table.

http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

## Answer this Question

## Related Questions

- Survey of Mathematics - On January 5, Ebony Davis borrowed $6,500 on a simple ...
- Urgent! Help please! - On January 5, Ebony Davis borrowed $6,500 on a simple ...
- Survey of mathematics - On January 5, Ebony Davis borrowed $6,500 on a simple ...
- math - Mr. Jones got a loan for a sum of money, and at the time of repayment he ...
- Math - Jared obtained a simple interest loan for 1200 at a credit union at an ...
- Algebra 1 - A finance company offers cheaper interest rates if you borrow a ...
- maths - Marie can afford a $250 per month car payment. She’s found a 5 year loan...
- Math - 1. Jacksonville Technical College received $3,445,553 in state aid on ...
- math - Liam borrowed a sum of money from his parents as an interest free loan to...
- HOW I GET A LEGIT LOAN @ 2% INTEREST RATE - HOW I GET A LEGIT LOAN @ 2% INTEREST...

More Related Questions