Answer:
Monthly payment is $247.53
Step-by-step explanation:
Firstly, we need to calculate the total amount to be paid back
we have this by calculating using the compound interest formula;
That will be;
A = P( 1 + r/n)^nt
where A is the amount to be paid back
P is the amount borrowed = $8,000
r is the interest rate = 3.6% = 3.6/100 = 0.036
n is the number of times we are compounding per year; since it is monthly, this is 12
t is the number of months which is 3
Substituting these values, we have
A = 8000( 1 + 0.036/12)^(12 * 3)
A = 8000(1 + 0.003)^36
A = 8000( 1.003)^36
A = $8,910.94
To know the monthly payment, we divide this by the number of months
That will be;
$8,910.94/36
= $247.53
