If the annual interest rate is 12%, what is the monthly interest rate?

A.
1%

B.
1.2%

C.
12%

D.
144%

Calculate the monthly payment for a $2,500 loan at 10% annual interest for two years.

Use the formula, M = Pm(1+m)^na/(1+m)^na-1
A.
$85.15

B.
$115.40

C.
$125.72

D.
$138.48

Calculate the total payback for a $2,500 loan at 10% annual interest for two years.

Use the formula, M = Pm(1+m)^na/(1+m)^na-1

as needed.

A.
$1,021.80

B.
$2,043.60

C.
$1,384.80

D.
$2,769.60

Oliva buys a 5-piece living room set from a furniture store offering 0% interest for 9 months. Calculate the average monthly payment she should make to avoid paying deferred interest charges for the $4,999 set.

A.
$277.72

B.
$416.58

C.
$555.44

D.
$833.17

Alice wants to use the stack method to pay down her debts listed in the table below. If she applies an extra $150 a month to her debts, what will be the first debt she targets to pay off and what will be the monthly amount she applies to it?

Debts Interest Rate Minimum Monthly Payment
Debt 1 5.5% $75
Debt 2 2.75% $250
Debt 3 13.25% $150
A.
Debt 2, $400

B.
Debt 2, $150

C.
Debt 3, $300

D.
Debt 3, $400

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

How do find the solutions?

1. If the annual interest rate is 12%, what is the monthly interest rate?

So the monthly interest rate is = 12/12 = 1%

2. Calculate the monthly payment for a $2,500 loan at 10% annual interest for two years.

Principal = $2500

Rate = 10%

Time = 2 years

We know the formula for the amount.

[tex]\rm Amount = principal (1+ \dfrac{rate}{100})^{time}\\\\Amount = 2500 (1 + \dfrac{10}{100})^2\\\\Amount = 3025[/tex]

For monthly payment

[tex]\rm Monthly\ payment = \dfrac{3025}{24}\\\\\rm Monthly\ payment = 125.4[/tex]

The monthly payment is $125.4

3. Calculate the total payback for a $2,500 loan at 10% annual interest for two years.

Principal = $2500

Rate = 10%

Time = 2 years

We know the formula for the amount.

[tex]\rm Amount = principal (1+ \dfrac{rate}{100})^{time}\\\\Amount = 2500 (1 + \dfrac{10}{100})^2\\\\Amount = 3025[/tex]

The total amount is $3025.

4. Oliva buys a 5-piece living room set from a furniture store offering 0% interest for 9 months. Calculate the average monthly payment she should make to avoid paying deferred interest charges for the $4,999 set.

[tex]\rm The\ average\ monthly\ payment\ = \dfrac{4999}{9}\\\\\rm The\ average\ monthly\ payment\ = 555.44[/tex]

So the average monthly payment is $555.44

Thus the required values are

1. The monthly interest rate is 1%

2. The monthly payment is $125.4

3. The total amount is $3025.

4. The average monthly payment is $555.44

5. The third option is correct.

More about the compound interest link is given below.

https://brainly.com/question/25857212