Question

megan borrows £5000 to buy a cat at a rate of 8% over 3 years. how much does she have to pay over the three years? if she pays the loan back every month over three years ,how much is her monthly payment?


if there was an arrangement fee of £500 for the initial loan, calculate the APR for the loan

Answer 1

i = .08/12 = .006666...
n = 3(12) = 36
let the monthly payment be p

p(1 - 1.00666...^-36)/.006666.. = 5000
p = 156.68

Is the second part a new question?
Not sure how this "arrangement" fee works in.
Do the payments change?
Clearly the interest rate is not 8%, or else it would not have been asked for
Please clarify

Answer 2

thank very much for you help really thank you cuz i did't understand anything of the question thank you for your help. its the same question you can use the same information