Question 9 • Financial Math - MA2007
Use the monthly payment formula for paying off a balance: payment = balance × monthly rate ÷ [1 − (1 + monthly rate)^−number of payments]. The monthly rate is 0.1066 ÷ 12, and a year and a half is 18 monthly payments. Substituting $2,513.77 gives a payment of about $151.73 per month, so the correct choice is $151.73.
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