Compute the monthly payments for an add-on interest loan of $850, with an annual interest rate of 15 percent and a term of 4 years.
850(1+.15/12)^48
= 1543.o516
Monthly payment
1543.0516/48 = $32..15
MY NAME IS PONCHELO MY LAST NAME IS CADET AND IM 8 YEAR OLD
To compute the monthly payments for an add-on interest loan, you can use the following formula:
Monthly Payment = (Loan Amount + Total Interest) / Number of Months
First, let's calculate the total interest:
Total Interest = Loan Amount * Annual Interest Rate * Term
In this case, the loan amount is $850, the annual interest rate is 15 percent (or 0.15 as a decimal), and the term is 4 years.
Total Interest = $850 * 0.15 * 4 = $510
Now, let's calculate the monthly payment:
Number of Months = Term * 12
Number of Months = 4 * 12 = 48
Monthly Payment = ($850 + $510) / 48 = $1360 / 48 = $28.33 (rounded to the nearest cent)
Therefore, the monthly payments for this add-on interest loan would be approximately $28.33.