Patrick will borrow $4300 at 11.5% APR. He will pay it back over 5 years. What will his monthly payment be? (Use the table)
A) $94.56 B) $96.79 C) $123.21 D) $141.81
What you are asked to do is to take the payment from the Table, which in this case is $2.199 per month over a period of 5 years, or 5 years x 12 months =60 months.
Then the monthly payment for $4,300 would be: $4,300/100 x $2.199 =$94.56 - which is accurate in this case.