Leslie Ann has a 36-month installment loan with a fixed monthly payment of $107.09. The amount she borrowed was $3600. Instead of making her 6th payment, Leslie Ann is paying off the remaining balance of the loan. Answer parts a) through c) below.
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We can use the formula for the monthly payment of a loan: $P = \frac{rPV}{1 - (1 + r)^{-n}}$ Where: - P is the monthly payment ($107.09) - r is the monthly interest rate - PV is the present value of the loan ($3600) - n is the number of payments (36) We can Show more…
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