Please help me understand how to do this question. http://i.gyazo.com/bb4f83802f060997f29fd30bc1753a89.png

Question

anonymous · Answer

@johnweldon1993 Are you going to be able to help? c:

johnweldon1993 · Answer

I hope I can lol...but I feel like this isnt as "straight-foward" as just dividing the 9.7 for the year by 12 to get the interest per month...lol just looking over it a couple times before I stick to that thought :P

johnweldon1993 · Answer

Ehh I dont see any reason why not...so hey!

lol

So if the Annual percentage rate is the 9.7%     per month, the interest rate would be $\large \frac{0.097}{12} = 0.00808333$

So after 1 month you would get charged an interest of $\large 958.62 \times 0.00808333 = 7.748845$

So that meas...if you make a payment of 105...you pay 7.748845 in interest which means only $\large 105 - 7.748845 = 97.25$ goes towards your principle balance

anonymous · Answer

Thank you!!!!

johnweldon1993 · Answer

Did all that make sense?

anonymous · Answer

Yes, thank you. I really appreciate it.