find the final monthly payment required to pay off a loan with $1,700 remaining principal and a 6% annual…

find the final monthly payment required to pay off a loan with $1,700 remaining principal and a 6% annual interest rate. $? round to the nearest cent.

find the final monthly payment required to pay off a loan with $1,700 remaining principal and a 6% annual interest rate. $? round to the nearest cent.

Answer

Answer:

$178.50

Explanation:

Step1: Calculate monthly interest rate

The annual interest rate is 6% or 0.06. The monthly interest rate $r$ is $\frac{0.06}{12}=0.005$.

Step2: Calculate interest for the month

The remaining principal $P = 1700$. The interest for the month $I=P\times r=1700\times0.005 = 8.5$.

Step3: Calculate final monthly payment

The final - monthly payment is the sum of the remaining principal and the interest for the month. So, the payment $=1700 + 8.5=1708.50$.