notsally14
Answered

At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Ally is buying a speed boat for $10,000 with a down payment of $2,500. The bank approved a simple interest flat rate loan for 5 years at 7% APR. How much are the monthly loan payments? (round to the nearest cent) A) $157.50 B) $168.75 C) $180.00 D) $191.25

Sagot :

AdrinaBTS987

Answer:

B

Step-by-step explanation:

View image AdrinaBTS987

The monthly loan payment should be $168.75.

Calculation of the monthly loan payment;

Since Ally is buying a speed boat for $10,000 with a down payment of $2,500. The bank approved a simple interest flat rate loan for 5 years at 7% APR.

The net principal should be

= $10,000 - $2,500

= $7,500

Now simple interest should be

= $7,500(5)(7%)

= $2,625

Now the total amount should be

= $7,500 + $2,625

= $10,125

Now the monthly payment is

[tex]= 10125\div (12\times 5)\\\\= 10125 \div 60[/tex]

= $168.75

Therefore, The monthly loan payment should be $168.75.

Learn more about rate here: https://brainly.com/question/24338143

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.