Questions: Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. Principal Annual Rate Method for Calculating Minimum Monthly Payment --------- 13,700 9% finance charge + 2% of principal This month's minimum payment is . (Round to the nearest cent as needed.)

Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. Principal Annual Rate Method for Calculating Minimum Monthly Payment --------- 13,700 9% finance charge + 2% of principal This month's minimum payment is . (Round to the nearest cent as needed.)
Transcript text: Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. \begin{tabular}{|c|c|c|} \hline Principal & Annual Rate & \begin{tabular}{c} Method for Calculating Minimum Monthly \\ Payment \end{tabular} \\ \hline$\$ 13,700$ & $9 \%$ & finance charge $+2 \%$ of principal \\ \hline \end{tabular} This month's minimum payment is $\$$ $\square$ (Round to the nearest cent as needed.)
failed

Solution

failed
failed

Solution Steps

Step 1: Calculate the monthly interest rate

The annual interest rate is \(9\%\). To find the monthly interest rate, divide the annual rate by 12: \[ \text{Monthly interest rate} = \frac{9\%}{12} = 0.75\% = 0.0075. \]

Step 2: Calculate the finance charge

The finance charge is the interest accrued on the principal for one month. Multiply the principal by the monthly interest rate: \[ \text{Finance charge} = \$13,700 \times 0.0075 = \$102.75. \]

Step 3: Calculate 2% of the principal

The minimum payment includes 2% of the principal. Calculate this as: \[ 2\% \text{ of principal} = 0.02 \times \$13,700 = \$274.00. \]

Step 4: Calculate the total minimum payment

Add the finance charge and 2% of the principal to get the total minimum payment: \[ \text{Minimum payment} = \$102.75 + \$274.00 = \$376.75. \]

Final Answer

This month's minimum payment is \(\boxed{\$376.75}\).

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
Divide the numbers and round the answer to the correct number of significant figures. 121.8 / 4.87
failedAnswered
¿Cuál es el propósito principal de Microsoft PowerPoint? a. Edición de imágenes b. Creación de presentaciones visuales c. Programación de software d. Navegación web
failedAnswered
The inverse notation f^-1 used in a pure mathematics problem is not always used when finding inverses of applied problems. Rather, the inverse of a function such as C=C(q) will be q=q(C). The following problem illustrates this idea. In a certain country, the following function represents the income tax T (in dollars) due for a person whose adjusted gross income is g dollars, where 30,650 ≤ g ≤ 74,250. T(g)=4230+0.25(g-30,650) (a) What is the domain of the function T ? The domain of the function T is g ≤ g ≤ .
failedAnswered
(A) Setor circular 11. Responda as questões, a seguir. a) Determine o comprimento de uma circunferência que possui diâmetro de 22 cm. Considere π=3,14. b) Uma circunferência de raio igual a 10 cm, possui quantos centímetros de comprimento? Considere π=3,1. 12. Em relação às posições relativas entre retas e circunferências: a) Complete as sentenças com as palavras do quadro, a seguir. dois - tangência - único - externa Reta secante é uma reta que corta a circunferência em pontos quaisquer. Reta tangente é uma reta que intercepta a circunferência em um ponto T. Esse ponto é conhecido como ponto de ou de contato. Reta é uma a reta que não possui nenhum ponto em comum com a circunferência. b) Escreva o nome da posição de cada reta, relativa à circunferência, nas figuras a seguir.
failedAnswered
Compute the total and annual returns on the following investment. You pay 5500 for a municipal bond. When it matures after 20 years, you receive 11,400. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.)