Respuesta :
The monthly payment for a one-year loan is $682.5.
The monthly payment for a two-year loan is $1365.
The monthly payment for a three-year loan is $2047.5.
Given that
Bart needs to borrow $7,000 from a local bank.
He compares the monthly payments for a 9.75% loan for three different periods of time.
According to the question
The monthly payment for the loan is determined by using the following formula;
[tex]\rm Monthly \ payment = Principal \times Interest \times Time[/tex]
1. The monthly payment for a one-year loan is,
[tex]\rm Monthly \ payment = Principal \times Interest \times Time\\\\\rm Monthly \ payment = 7000 \times 0.0975 \times 1\\\\\rm Monthly \ payment =682.5[/tex]
The monthly payment for a one-year loan is $682.5.
2. The monthly payment for a two-year loan is,
[tex]\rm Monthly \ payment = Principal \times Interest \times Time\\\\\rm Monthly \ payment = 7000 \times 0.0975 \times 2\\\\\rm Monthly \ payment =1365[/tex]
The monthly payment for a two-year loan is $1365.
3. The monthly payment for a three-year loan is,
[tex]\rm Monthly \ payment = Principal \times Interest \times Time\\\\\rm Monthly \ payment = 7000 \times 0.0975 \times 3\\\\\rm Monthly \ payment =2047.5[/tex]
The monthly payment for a three-year loan is $2047.5.
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