Chapter $7$

Financial Planning Exercise $7$

Calculating monthly installment loan payments

Using the simple interest method, find the monthly payments on a $$2,500$ installment loan if the funds are borrowed for $18$ months at an annual interest rate of $6\%.$ You can use financial calculator, Excel, or Exhibit $7\mathrm{.}6).$ Round the answer to the nearest cent. Round the answer to the nearest cent.

$ $$ per month

How much interest will be paid during the first year of this loan? $($Use a monthly payment analysis similar to the one in Exhibit $7\mathrm{.}7.)$ Round your intermediate computations and final answers to the nearest cent.