Answer:
The question is incomplete, so I looked for a similar one:
You borrow $900 from your bank for 3 months. The loan agreement states that you must repay the loan at a rate of $300 per month plus interest. The interest rate for the loan is 2 % above the prime interest rate. During the first month the prime rate is 4.45% during the second month it is 5.25% and during the third month it is 5.% What is the total amount of interest you pay on the loan?
the first monthly payment = $300 + ($900 x 6.45% x 1/12) = $304.84
interest payments = $4.84
the second monthly payment = $300 + ($600 x 7.25% x 1/12) = $303.63
interest payments = $3.63
the third monthly payment = $300 + ($300 x 7% x 1/12) = $301.75
interest payments = $1.75
