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What is the monthly payment

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Question - To buy a fishing boat, you took a loan of $25000 for 36 months at 7.5% APR (Annual Percentage Rate). You agreed to return the loan by making monthly payments. The monthly payment, given in the Formula Sheet, is based on accrual of interest on the balance (each month) at a monthly interest rate of r as decimal. You need not derive the formula. Answer the following.

i. What is the monthly payment?

ii. How much of the first month's payment is interest?

iii. What percentage of the first month's payment is interest?

iv. How much total interest will you have paid at the end of the 36 months?

Reference no: EM133143685

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