Question

A college student borrows $2,000 for 9 months to pay for a semester of school. If the interest is $123.75, find the monthly payment

Answer 1

Total amount borrowed by college student = $ 2,000

Total interest paid = $123.75

Total amount the student has to pay = $2,000 + $123.75

= $2123.75

Total duration for which the amount is borrowed = 9 months

Total amount he has to pay back in 1 month =
`$2123.75 / 9`

= $235.9

Therefore, Amount he has to pay in 1 month = $235.9