Flat Rates. (1 Viewer)

[rr.dun.dun]

Need help with this question.

Katie borrowed $8500 over 3 years at a flat rate interest of 13.5% p.a. to help towards her wedding. She included the $7.50 stamp duty and $15 per year loan insurance in the amount borrowed and repaid the loan in monthly instalments.

a) How much did she borrow altogether?
b) How much interest did she pay?
c) What was her monthly repayment?

I got the answers wrong. They are supposed to be:
a)$8552.50
b)$3463.76
c)$333.79

How do you get these answers?

Please help?!

 

[jayraad]

A)
She borrows $8500 plus $7.50 stamp duty and $15 per year for 3 years on insurance so 8500+7.50+(15x3) = $8552.50

B)
I=PRN.
P= 8552.5.
R=13.5% divided by 12(months) = 1.125% Interest per month.
N= (3x12) = 36 months.

Therefore 8552.5x1.125/100 x 36 = $3463.76

C)
$3463.76 + $8552.5 = $12016.26 and divide by 36 months to find out monthly payments which equals to $333.79

Hope it helped. Good Luck!

 

[rr.dun.dun]

A)
She borrows $8500 plus $7.50 stamp duty and $15 per year for 3 years on insurance so 8500+7.50+(15x3) = $8552.50

B)
I=PRN.
P= 8552.5.
R=13.5% divided by 12(months) = 1.125% Interest per month.
N= (3x12) = 36 months.

Therefore 8552.5x1.125/100 x 36 = $3463.76

C)
$3463.76 + $8552.5 = $12016.26 and divide by 36 months to find out monthly payments which equals to $333.79

Hope it helped. Good Luck!

yes it did. Thank you.