You borrow $20,000 to buy a boat. The loan is to be paid off in monthly installments over one year at 18% interest annually. The first payment is due one month from today. What is the amount of each monthly payment?

Name: You borrow $20,000 to buy a boat. The loan is to be paid off in monthly installments over one year at 18% interest annually. The first payment is due one month from today. What is the amount of each monthly payment?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

$20,000 ÷ 10.90751* = $1,834 (rounded)
*PVA of $1: n = 12; i = 1.5%

You Borrow $20,000 to Buy a Boat