If you pay off a $3,500 loan in 12 equal payments over 1 year at 1% monthly interest,how much will your payments be each month?

Question

Quizplus · Accepted Answer

The first step is to calculate the total amount of interest paid over the course of the loan:
(0.01 * 3500) * 12 = $420

Then, we add the interest to the original loan amount to get the total amount to be paid:
3500 + 420 = $3920

Finally, we divide the total amount by the number of payments:
3920 / 12 = $310.97

Therefore, the monthly payments will be $310.97 (rounded to the nearest cent), so the best choice is B.

If You Pay Off a $3,500 Loan in 12 Equal