Answer:
Alright, let's do some quick math!
a) Total interest payment:
Interest = Principal × Rate × Time
Interest = $12,000 × 9% × 5 years
Interest = $12,000 × 0.09 × 5
Interest = $5,400
b) Total amount to repay:
Total amount = Principal + Interest
Total amount = $12,000 + $5,400
Total amount = $17,400
c) Monthly payment:
Number of months = 5 years × 12 months/year
Number of months = 60 months
Monthly payment = Total amount / Number of months
Monthly payment = $17,400 / 60
Monthly payment = $290
So, Stephenson should pay $290 each month for 60 months.
