At Lefty's Loans they use the simple interest
formula for all their loans. |
ex. Mr.
Toejam borrows $2000 for 3 years at a rate of 15%.
I=2000(.15)(3)=900
He must pay Lefty back 2900 in
three years.
His monthly payments would be $80.56.
$2900 ÷
36 months
What would the monthly payments
be on a loan of $10,000 for 4 years at a rate of
12%?
|