Compute the monthly payments for an add-on interest loan of $3,550, with an annual interest rate of 10 percent and a term of 3 years. Round to the nearest cent as needed.

Question

anonymous · Answer

When you know the principal amount, the rate and the time. The amount of interest can be calculated by using the formula:I = Prt

anonymous · Answer

im sorry to seem so stupid, but how would i go about finding the principal amount? is it 3,550?

anonymous · Answer

yes

anonymous · Answer

so is the answer 1065?

anonymous · Answer

that is the ammount of interest you have earned, but am confused on the Compute the monthly payments for an add-on interest loan part

anonymous · Answer

im not sure but i would say to divide that number by 36 to give you the monthly cost

anonymous · Answer

Okay, that seems to have worked out nice. Thank you so much for the help!

anonymous · Answer

not a problem