Answer:
The amount of monthly installments is $267.30
Step-by-step explanation:
Here, we are interested in calculating the amount of the monthly is installments.
To get the amount of the installments, we need to calculate the sum of the interest and the amount borrowed.
Mathematically,
Simple interest = PRT/100
from the question;
P = principal which is the amount borrowed = $10,000
R = rate = 3.5%
T = time = 42 months = 42/12 = 3.5 years
Substitute these values into the formula for simple interest;
We have ;
S.I = (10,000 * 3.5 * 3.5)/100 = $1,225
So the total amount to
payback = interest + principal = 1225 + 10,000 = 11,225
So the amount of installments will be ;
The amount to payback/number of months
Mathematically that would be ; 11,225/42 = $267.26 which is approximately $267.30 per month
