Respuesta :
Option C
Monthly loan payment is $ 93.33
Solution:
From given question,
Cost of sailboat = $ 3000
Down payment = $ 1000
Hence net principal is given as:
net principal = p = $ 3000 - $ 1000 = $ 2000
p = $ 2000
The bank approved a simple interest flat rate loan for 2 years at 6% APR
Hence number of years = 2 years
Rate of interest = 6 %
Let us first calculate the simple interest
The formula for simple interest is given as:
[tex]\text{ simple interest } = \frac{ p \times n \times r}{100}[/tex]
Substituting the given values,
[tex]\text{ simple interest } = \frac{ 2000 \times 2 \times 6}{100}\\\\\text{ simple interest } = 20 \times 2 \times 6 = 240[/tex]
Thus simple interest = $ 240
Total amount payable = principal + simple interest
Total amount payable = $ 2000 + $ 240
Total amount payable = $ 2240
How much are the monthly loan payments?
Here number of years = 2 years
To calculate the monthly payment divide the total amount payable by 24 (since 2 year = 24 months )
[tex]\text{ Monthly loan payment } = \text{ Total amount payable } \div 24[/tex]
[tex]\text{ Monthly loan payment } = \frac{2240}{24} = 93.33[/tex]
Thus monthly loan payment is $ 93.33 Option C is correct
