Answer:
$545
Explanation:
The total amount of interest to be paid is obtained by the formula.
I= p x r x t,
Where I= interest
P= principal amount
R= interest rate
T= time
In this case
I= $18,000 x 3/100 x 3
I= $18,000 x 0.03 x 3
I=$18,000 x 0.09
Interest paid will be $1,620
Total amount to be repaid is the principal amount plus interest
=$18,000 + $1,620
=$19,620.
The amount of $19,620 will be repaid in 3 years( 36 months)
monthly payment will be
=$19,620 /36
=$545
Monthly repayments will be $545
