# borrowing money

posted by .

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 -

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

## Similar Questions

1. ### Math

Jared obtained a simple interest loan for 1200 at a credit union at an annual interest rate o f 5.5%. if Jared paid \$1430 to repay the loan, for how many months, was the money borrowed ?
2. ### Algebra 1

A finance company offers cheaper interest rates if you borrow a larger sum of money for shorter time period. A borrower is offered \$7000 at 12% or \$10080 at 10%. If the tome for the lager loan is 6 months less but the total interest …
3. ### Math

1. Jacksonville Technical College received \$3,445,553 in state aid on September 15 for the fall academic semester. The vice-president for finance decided to invest \$2,000,000 in a 2-month investment that pays 11.5% simple interest. …
4. ### maths

Marie can afford a \$250 per month car payment. She’s found a 5 year loan at 7% interest. a. How expensive of a car can she afford?
5. ### math

Liam borrowed a sum of money from his parents as an interest free loan to help him pay college. We know that 6 months into the loan,owned 17,900 and that 15 months into into the loan he owned 14,750. 1. What is the original amount?
6. ### Survey of mathematics

On January 5, Ebony Davis borrowed \$6,500 on a simple interest loan from a lending institution to finance her catering business. She borrows the money at a rate of 8.5% with a term ending on December 9. a. Calculate Ebony's interest …