Okay here is my question
two guys buy a new room for $10,000
down payment: $1000
and they want to pay whatever they owe in 30 monthly payments..
find the amount of the monthly payment at 10% add on interest.
I keep getting 330..
but the answer is 375.
I don't understand :/
Assistance needed.
my answer is correct.
could help me with my other question.
I cannot -- really! You don't want me helping you with math!!
But if you put the word MATH at the beginning of the subject line, you'll get the attention of a tutor or two who can.
=)
To find the amount of the monthly payment, we need to take into account the down payment of $1000 and the remaining balance of $9000 (i.e., $10,000 - $1000).
Next, we need to consider the interest rate of 10%. This interest is being added to each monthly payment, which means we are dealing with a scenario known as an "add-on interest" loan. In this type of loan, the interest is calculated based on the original loan amount and added to the total balance upfront, rather than being calculated based on the outstanding balance each month.
To calculate the add-on interest, we can use the following formula:
Add-on interest = (Original loan amount * Interest rate)
In this case, the original loan amount is $10,000 and the interest rate is 10%, so the add-on interest is:
Add-on interest = ($10,000 * 0.10) = $1000
Now, we need to determine the total amount to be paid back, including both the original loan amount and the add-on interest:
Total amount to be paid back = Original loan amount + Add-on interest
Total amount to be paid back = $10,000 + $1000 = $11,000
Finally, we divide the total amount to be paid back by the number of monthly payments (30) to find the amount of the monthly payment:
Monthly payment = Total amount to be paid back / Number of monthly payments
Monthly payment = $11,000 / 30 = $366.67 (rounded to two decimal places)
So, according to my calculations, the monthly payment should be around $366.67, not $375. However, it's possible that the given answer of $375 includes some additional fees or charges not mentioned in the question.