Question 1 • [PERFIN] Personal Finance, Sem 2 (26-27)
To pay off the additional $1,000 in 12 months, use the monthly rate of 17.5% ÷ 12 and the 12-month loan-payment formula. The added monthly payment is about $1,000 × 0.014583 ÷ [1 − (1 + 0.014583)⁻¹²] = $91.44. So the minimum monthly payment must increase by $91.44, choice b.
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