Asked by Clara

Suppose you borrow $12,000, which you must pay back in 30 equal monthly payments, each of which includes a .8% interest charge on the unpaid balance.

a) How much will you need to pay each month?
b) How much money did the bank make on this deal?

Answers

Answered by Reiny
I will assume the .8% is the monthly rate

let the payment be P
12000 = P(1 - 1.008^-30)/.008

a) solve for P , I got 451.51

b) what is 451.51(30) compared to 12000 ?
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