First, we need to calculate the total amount of interest Rhonda will pay over the 12 months:
Interest = Principal x Rate x Time
Interest = $700 x 0.09 x 1
Interest = $63
So the total amount Rhonda will pay back over the 12 months is:
Total payment = Principal + Interest
Total payment = $700 + $63
Total payment = $763
Now we need to calculate the monthly installment payment. We know that she must pay $8.7453 per $100 each month, so for the full loan amount of $700, her monthly payment would be:
Monthly payment = $8.7453 x 7
Monthly payment = $61.22
Therefore, the answer is b. $61.22.
Rhonda borrowed $700 at 9% interest for 12 months under a monthly
installment plan. She must pay $8.7453 per $100 each month for 12
months. How much is her monthly installment payment?
a. $63.00
b. $61.22
c. $734.60
d. $6.12
1 answer
1 answer