Answer:
Amount of each payment = $15 each month
Step-by-step explanation:
Given:
Amount borrow = $600
Simple rate = 5% = 0.05
Number of year = 4 year
Payment method = monthly payment
Find:
Amount of each payment
Computation:
Total amount after 4 year = P + PRT
Total amount after 4 year = 600 + (600)(4)(0.05)
Total amount after 4 year = 600 + 120
Total amount after 4 year = $720
Number of total month = 4 x 12
Number of total month = 48
Amount of each payment = Total amount after 4 year / Number of total month
Amount of each payment = $720 / 48
Amount of each payment = $15 each month
