Respuesta :
Using simple interest, it is found that the monthly payments are of $854.875.
Simple Interest
Simple interest is used when there is a single compounding per time period.
The amount of money after t years in is modeled by:
[tex]A(t) = A(0)(1 + rt)[/tex]
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
In this problem, the parameters are A(0) = 49000, r = 0.0665, t = 7, hence the total amount is of:
[tex]A(t) = A(0)(1 + rt)[/tex]
[tex]A(t) = 49000[1 + 0.0665(7)][/tex]
[tex]A(t) = 71809.5[/tex]
Payments over a period of 12 x 7 = 84 months, hence the monthly payments are of:
71809.5/84 = $854.875.
More can be learned about simple interest at https://brainly.com/question/25296782
