Answer:
$4.72 per month
Step-by-step explanation:
The true interest rate is how much more he has to give with interest.
Let's find the interest on $48 first.
Let's convert 18% to decimal, that is:
18/100 = 0.18
Now, to find 18% of $48, we multiply, so,
Interest = $48 * 0.18 = $8.64
In total, he has to pay:
48 + 8.64 = $56.64
This is spread over 12 months (since he has to pay in 1 year), so each month payment would be:
56.64/12 = $4.72 per month
