Zack borrowed $1,087 for 12 months at 11 percent interest. If he must pay 11.00 per $100, what is Zack's monthly payment?

Accepted Solution

Since we know that Zack must pay $11.00 per $100 monthly, we just need to divide the total amount of the loan, $1,087, by $100 to check how many times he must pay $11.00 each month:

[tex] \frac{1087}{100} =10.87[/tex]

Now we know that he must pay $11.00 10.87 times each month, so the last thing we are going to do to find his monthly payment is multiply both quantities:

We can conclude that Zack's monthly payment is $119.57