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Melissa wants to check the accuracy the accuracy of the finance charge on her promissory note. She has a $6000, four-year loan at an APR of 3.11% rounded to the nearest cent

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Answer:

1. Melissa wants to check the accuracy of the finance charge on her promissory note. She has a $6,000, 4-year loan at an APR of 3.11%.

What is her monthly payment?

$133.10

mickymike92

Based on amortization loan formula, Melissa should make a monthly payment of $133.10.

What is the monthly payment?

Assuming the loan is compounded monthly, the total monthly payment is calculated from the amortization formula as follows:

  • A=P(i(1+i)^n)/((1+i)^n-1)

where:

  • A = monthly payment
  • P = amount borrowed = $6000
  • i = monthly interest = 0.0311/12
  • n = number of months = 4× 12 = 48 months

Calculating the monthly payment:

A = 6000(0.0311/12 (1 +.0311/12)^48)/((1 +.0311)^48-1)

A = $133.10

Therefore, Melissa should make a monthly payment of $133.10.

Learn more about amortization loan at: https://brainly.com/question/17960115