Question

Megan took out a loan of $85,600 at an interest rate of 11. 5%, compounded monthly. She paid off the loan in full over the course of exactly twelve years. Assuming that Megan made the same payment every month for twelve years, what was her monthly payment? a. $1,125. 03 b. $629. 52 c. $1,098. 52 d. $820. 33.

Answer 1

The monthly payment of Megan was $1,098. 52 for the loan amount taken by her.

The principal amount is $85,600 at 11. 5% of the interest that is compounded monthly in 12 years.

The compounded interest would be calculated as below:

$P*(1+\frac{r}{n})^{nt} \\=85600 *(1+\frac{0.115}{12} )^{12*12} \\=338120$

Hence, the payment compounded in each month for 12 years would have 144 months, that would give payment amount as:

$\frac{338120}{144} \\=2348.05$

Learn more about interest payment here;

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Learn more about interest payment calculation here:

https://brainly.com/question/2684619