Question

Michelle borrowed $10,125 at 12.5 percent for 10 years. What is her monthly payment

Answer 1

Michelle's monthly payment will be $148.21.

Explanation:

The EMI formula is =

`(p* r*(1+r)^(n) )/((1+r)^(n)-1)`

Here,

p = $10125

r =
`12.5/12/100=0.010417`

n =
`10*12=120`

Putting all these values in the formula we get,

`(10125*0.010417*(1+0.010417)^(120) )/((1+0.010417)^(120)-1)`

=>
`(10125*0.010417*(1.010417)^(120) )/((1.010417)^(120)-1)`

=$148.21

So, Michelle's monthly payment will be $148.21.

Answer 2

$148.21

Explanation:

A suitable financial calculator, web site, or spreadsheet can figure this for you. Or you can use the formula given in your reference material (text or web site).