Question

Mr. Spend has accumulated credit card loans of $15,000 and is finding it difficult to make payments. His local bank has offered him a consolidation loan to pay off all the credit card loans. The loan calls for monthly payments for 10 years and has a nominal interest rate of 5.99% (APR). What will Mr. Spends monthly payments be if he takes the loan?

Answer 1

Answer:

$166.46 per month

Explanation:

The Monthly installments are calculated as follows

availabe data is

P=$15,000

i= 5.99%

n=120 (10*12) i.e number of years into number of months in a year

R=monthly installments

Formula for this works like this;

R=P i(1+i)^n/(1+i)^n-1

By entering formula we get= $166.46 per month installment