Question 10 • [PERFIN] Personal Finance, Sem 2 (26-27)
Use the fixed-payment loan formula with a monthly interest rate of 16% ÷ 12. Paying off $3,500 in 12 months requires a monthly payment of about $317.56; paying it off in 15 months requires about $258.99. The raise must cover the difference, $317.56 − $258.99 = $58.57 per month, so the additional income needed is $58.57.
AI-written and checked against the verified answer.