You borrow $17,500 from Loanshark Bank and agree to repay the loan with monthly payments at the end of each month for 8 years and with interest calculated at 12.5 % compounded monthly. a) What is the amount of the monthly payment ROUNDED UP to the nearest cent? b) Given the "rounded up" monthly payments from the answer above, what is the amount of the final payment?
Added by Cole L.
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Since the annual interest rate is 12.5%, we can divide it by 12 to get the monthly interest rate: Monthly interest rate = (12.5% / 12) = 1.0416667% Now, we need to find the number of payments. Since the loan is for 8 years and there are 12 months in a year, Show more…
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