find the final monthly payment required to pa...
find the final monthly payment required to pay off a loan with $1,100 remaining principal and a 15% annual interest rate. $? round to the nearest cent.
Answer
# Explanation:
## Step1: Calculate monthly interest rate
The annual interest rate is 15% or 0.15. The monthly interest rate $r$ is $\frac{0.15}{12}= 0.0125$.
## Step2: Calculate final monthly payment
The final - monthly payment includes the remaining principal and the interest on the remaining principal. The interest on the remaining principal of $P = 1100$ is $I=P\times r=1100\times0.0125 = 13.75$. The final monthly payment is the sum of the remaining principal and the interest, so $A=1100 + 13.75=1113.75$.
# Answer:
$1113.75$