Question

MAX POINTS
The 19% APR is the annual interest rate, but it is compounded monthly. What is the
monthly interest rate?

Other loan info (I don't know what all you need to calculate this)

The debt owed is 910$ and the minimum payments is 2.5% or ten dollars whatever is larger. Assume Zach is going to pay only the minimum. If he only pays minimum it would take him 154 months.

Answer 1

Answer:

• Monthly rate: 19%/12 ≈ 1.5833%
• 72 months to pay off the loan

Step-by-step explanation:

The monthly interest rate is the annual rate (APR) divided by 12.

  19%/12 ≈ 1.5833%

The loan will be paid in fewer than 91 months, because Zach will be paying at least $10 per month on his current balance of $910. The attached spreadsheet shows it will take 73 payments to pay off the loan.