Problem
What is the monthly payment amount? $360 $530 $1,800 $6,360
Given facts
The amount to be borrowed $30,000
Interest rate is 6%
the term of payment is 5 years
Mathematical operation
Division, addition and multiplication
Solution and Answer
1.Get the interest
convert interest rate to decimal 6%=0.06
$30,000 x 0.06= $1800
2. Add the borrowed amount and interest to get the total amount to be paid by Brendon.
$30,000 + $1800= $38,000
3. The payment would be done on a monthly basis for 5 years.
5 years = 60 months
4. Divide the total borrowed payment to the number of months. To get the amount of the monthly payment.
$38,000/60
5. The monthly payment.
Answer $530
