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Math

QuestionKaran borrowed \$3,650 for 5 months at 10% interest. What is her monthly payment?

Studdy Solution

STEP 1

Assumptions1. The borrowed amount is $3,650. The interest rate is10%
3. The time for repayment is5 months4. The interest is calculated as a one-time payment, not monthly compounding5. Both the principal amount and interest must be equally divided among the5 months

STEP 2

First, we need to find the interest amount on the borrowed sum. We can do this by multiplying the borrowed amount by the interest rate.
Interest=Borrowed amounttimesInterest rateInterest = Borrowed\, amount \\times Interest\, rate

STEP 3

Now, plug in the given values for the borrowed amount and interest rate to calculate the interest.
Interest=$3,650times10%Interest = \$3,650 \\times10\%

STEP 4

Convert the percentage to a decimal value.
10%=0.110\% =0.1Interest=$3,650times0.1Interest = \$3,650 \\times0.1

STEP 5

Calculate the interest amount.
Interest=$3,650times0.1=$365Interest = \$3,650 \\times0.1 = \$365

STEP 6

Now that we have the interest amount, we can find the total amount Karan has to pay back. This includes both the borrowed amount and the interest.
Total amount=Borrowed amount+InterestTotal\, amount = Borrowed\, amount + Interest

STEP 7

Plug in the values for the borrowed amount and the interest to calculate the total amount.
Total amount=$3,650+$365Total\, amount = \$3,650 + \$365

STEP 8

Calculate the total amount Karan has to pay back.
Total amount=$3,650+$365=$4,015Total\, amount = \$3,650 + \$365 = \$4,015

STEP 9

Now that we have the total amount Karan has to pay back, we can divide this by the number of months (5) to find the amount she needs to pay each month.
Monthly payment=Total amount/Number of monthsMonthly\, payment = Total\, amount / Number\, of\, months

STEP 10

Plug in the values for the total amount and the number of months to calculate the monthly payment.
Monthly payment=$4,015/5Monthly\, payment = \$4,015 /5

STEP 11

Calculate the monthly payment amount.
Monthly payment=$4,015/5=$803Monthly\, payment = \$4,015 /5 = \$803Karan needs to pay $803 each month.

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