The monthly payment will be $249
Firstly, we will calculate the simple interest which will be:
= PRT/100
where,
P = principal = $12000
R = rate = 4.9%
T = time = 5 years
Simple Interest = PRT/100
= ($12000 × 4.9 × 5)/100
= $294000/100
= $2940
Then the total amount to be repaid will be: = Principal + Interest
= $12000 + $2940
= $14940
We'll convert 5 years to months and this will be: = (5 × 12) = 60 months.
The monthly payment will then be:
= $14940/60
= $249
In conclusion, the monthly payment will be $249
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