An investor bought an antique table for $6000. He paid 5% as a deposit and borrowed the remainder from a bank for two years at 18% p.a. simple interest, payable monthly. How much interest does he have to pay each month?
First lets get rid of the deposit. (0.95*6000)=5700
Formula is I=PRT I= Interest earned P=Principal amount (5700) R=Rate (18% or 0.18 or 18/100) T=Time period (2 years) Equation: I= 5700*2*0.18 I= 2052 But remember the question asks for monthly payments! 2052/24 (12 months in a year and T= 2 years) Answer=$85.50
