Question 9 • Personal Finance - EL3403
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.
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