To calculate the monthly payments for a simple interest loan, we first need to determine the total interest charged on the loan and then add that interest to the principal to find the total amount to be repaid. Finally, we'll divide that total by the number of monthly installments.
Step 1: Calculate the interest
Simple interest can be calculated using the formula:
\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
In this case:
- Principal = $3,000
- Rate = 15% (or 0.15)
- Time = 1 year (since we need the total interest for 12 months)
Now we calculate the interest:
\[ \text{Interest} = 3000 \times 0.15 \times 1 = 450 \]
Step 2: Calculate the total amount to be repaid
Now we add the total interest to the principal to find the total repayment amount:
\[ \text{Total Repayment} = \text{Principal} + \text{Interest} = 3000 + 450 = 3450 \]
Step 3: Calculate the monthly payments
Now, we divide the total repayment amount by the number of monthly installments (12):
\[ \text{Monthly Payment} = \frac{\text{Total Repayment}}{12} = \frac{3450}{12} = 287.50 \]
Conclusion
The amount of the monthly payments is $287.50.
So the correct answer is: $287.50
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