Gyuhun takes out a loan of $1500 tofurnish his new student apartment.The terms of the loan are that Gyuhunwill pay equal monthly instalments.Interest is calculated monthly and ischarged at 12% p.a. The loan is to berepaid in two years.Calculate the amount that Gyuhunhas to pay each month if the first.repayment is made one month after themoney is borrowed and after interest iscalculated.​

Accepted Solution

Answer:$77.5 per month.Step-by-step explanation:Gyuhun took a loan of $1500 which will be repaid in two years. So, each month he has to pay the principal of  $[tex]\frac{1500}{2 \times 12}= 62.5[/tex]. Now, he has to give the interest also per month. The loan is charged at 12% per year i.e 1% per month. Therefore, the total charges per month will be 1500 × 0.01 = $15  Therefore, each month Gyuhun has to repay  $(62.5 + 15) = $77.5. (Answer)