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John borowed 12,000 and agreed to repay the loan in six equal monthly payments plus interest of 1.5% per month on the unpaid balance. What is his total payment for the third month?

  • math -

    strange way to pay back a loan...

    The way I read the question, you are paying $2000 per month plus the interest?

    month# paym interest balance
    1 ---- 2000 -- 180.00 10000.00
    2 ---- 2000 -- 150.00 8 000.00
    3 ---- 2000 -- 120.00 6 000.00 ---> $2120.00
    4 ---- 2000 --- 90.00 4 000.00
    5 ---- 2000 --- 60.00 2 000.00
    6 ---- 2000 --- 30.00 ----0--

    In reality the payment would be $x, such that

    12000 = x( 1 - 1.015^-6)/.015
    x = $2106.30

    # payment interest repaymt balance

    1 2106.30 180.00 1926.30 10073.70
    2 2106.30 151.11 1955.20 8118.50
    3 2106.30 121.78 1984.53 6133.98
    4 2106.30 92.012014.29 4119.68
    5 2106.30 61.80 2044.51 2075.17
    6 2106.30 31.13 2075.17 ---0.00

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