at an interest rate of 5% per year. He plans to pay back the loan in monthly installments over the course of 1 year.
To calculate the monthly payment, we first need to determine the total amount of interest Dr. Enriquez will pay over the course of the loan.
Total loan amount: $6,370
Annual interest rate: 5%
Total interest = Total loan amount x Annual interest rate
Total interest = $6,370 x 0.05
Total interest = $318.50
Now, we can determine the total amount Dr. Enriquez will pay back over the course of the loan.
Total amount to be repaid = Total loan amount + Total interest
Total amount to be repaid = $6,370 + $318.50
Total amount to be repaid = $6,688.50
Since Dr. Enriquez will pay back the loan in monthly installments over the course of 1 year (12 months), we can now calculate the monthly payment.
Monthly payment = Total amount to be repaid / Number of months
Monthly payment = $6,688.50 / 12
Monthly payment = $557.38
Therefore, Dr. Enriquez will need to make monthly payments of $557.38 in order to pay back the loan in full over the course of 1 year.
Dr.Enriquez borrowed $6,370 from the national bank
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