find the final monthly payment required to pay off a loan with $1,100 remaining principal and a 15% annual…

find the final monthly payment required to pay off a loan with $1,100 remaining principal and a 15% annual interest rate. $? round to the nearest cent.

find the final monthly payment required to pay off a loan with $1,100 remaining principal and a 15% annual interest rate. $? round to the nearest cent.

Answer

Explanation:

Step1: Calculate monthly interest rate

The annual interest rate is 15% or 0.15. The monthly interest rate $r$ is $\frac{0.15}{12}= 0.0125$.

Step2: Calculate final monthly payment

The final - monthly payment includes the remaining principal and the interest on the remaining principal. The interest on the remaining principal of $P = 1100$ is $I=P\times r=1100\times0.0125 = 13.75$. The final monthly payment is the sum of the remaining principal and the interest, so $A=1100 + 13.75=1113.75$.

Answer:

$1113.75$