Answer:
A. [tex]I\approx \$103.16[/tex]
B. [tex]\text{Total payment}=\$1161.16[/tex]
C. [tex]\text{The monthly payment}\approx \$129.02[/tex]
Step-by-step explanation:
We have been given that Devin borrowed $1,058 at 13 percent for nine months.
A. To find the amount of interest paid by Devin we will use formula: [tex]I=Prt[/tex], where,
[tex]I=\text{Amount of interest}[/tex],
[tex]P=\text{Principal amount}[/tex],
[tex]r=\text{Interest rate in decimal form}[/tex],
[tex]t=\text{Time in years}[/tex].
Let us convert our given interest rate in decimal form and time in years.
[tex]13\%=\frac{13}{100}=0.13\\\text{9 months}=\frac{9}{12}\text{ year}=\frac{3}{4}=0.75\text{ year}[/tex]
Upon substituting our given values in interest formula we will get,
[tex]I=\$1058*0.13*0.75[/tex]
[tex]I=\$103.155\approx \$103.16[/tex]
Therefore, the amount of interest paid by $103.16.
B. Since total payment will be equal to interest rate plus amount of interest.
[tex]\text{Total payment}=\$1058+\$103.16[/tex]
[tex]\text{Total payment}=\$1161.16[/tex]
Therefore, Devin's total payment will be $1161.16.
C. To find the monthly payment we will divide total amount by 9.
[tex]\text{The monthly payment}=\frac{\$1161.16}{9}[/tex]
[tex]\text{The monthly payment}=\$129.01722\approx \$129.02[/tex]
Therefore, the amount of Devin's monthly payment is $129.02.
