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You borrow $900 from your bank for 3 months. The loan agreement states that you must repay the loan at a rate of $300 per month plus interest. The interest rate for the loan is above the prime interest rate. During the first month the prime rate is during the second month it is and during the third month it is What is the total amount of interest you pay on the loan

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jepessoa

Answer:

The question is incomplete, so I looked for a similar one:

You borrow $900 from your bank for 3 months. The loan agreement states that you must repay the loan at a rate of $300 per month plus interest. The interest rate for the loan is 2 % above the prime interest rate. During the first month the prime rate is 4.45% during the second month it is 5.25% and during the third month it is 5.% What is the total amount of interest you pay on the loan?

the first monthly payment = $300 + ($900 x 6.45% x 1/12) = $304.84

interest payments = $4.84

the second monthly payment = $300 + ($600 x 7.25% x 1/12) = $303.63

interest payments = $3.63

the third monthly payment = $300 + ($300 x 7% x 1/12) = $301.75

interest payments = $1.75

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