#6 - Calculate the monthly payment necessary to retire the following loan amount is simple interest is charged on the rate.
• Loan Amount: $4500
Rate: 10%
• Time: 3 years
Select the correct answer from each dropdown menu.
A) Interest Owed: $ (Select]
B) Maturity Value: $ (Select]
C) Monthly Payment: $ [Select]

9514 1404 393

  A)  $1350

  B)  $5850

  C)  $162.50

Step-by-step explanation:

A) The interest is given by the formula ...

  I = Prt

where P is the principal amount, r is the interest rate, and t is the number of years.

  I = $4500×0.10×3 = $1350

The interest owed is $1350.

__

B) At maturity, the principal and interest are due. That amount is ...

  $4500 +1350 = $5850

The maturity value is $5850.

__

C) If the maturity value is paid in 36 equal monthly installments, each is ...

  $5850/36 = $162.50

The monthly payment is $162.50.

17

step-by-step explanation:

51/3=17

thus 17 is your answer.