Using simple interest, it is fond that Janet’s new monthly payment is of $142.92.
Simple Interest
Simple interest works like a simple linear function, in which the amount increases proportionally with the interest rate.
The amount of money after t years in simple interest is modeled by:
[tex]A(t) = A(0)(1 + rt)[/tex]
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
In this problem:
- The amount is of $3500, hence A(0) = 3500.
- She pays in 4 years, hence t = 4.
The total amount paid is of:
[tex]A(t) = A(0)(1 + rt)[/tex]
[tex]A(4) = 3500[1 + (0.24)(4)][/tex]
[tex]A(4) = 6860[/tex]
She pays in 4 x 12 = 48 months, hence the monthly payment is of:
$6860/48 = $142.92.
You can learn more about simple interest at https://brainly.com/question/25296782
