Discover a wealth of knowledge and get your questions answered on IDNLearn.com. Join our community to access reliable and comprehensive responses to your questions from experienced professionals.
She would have to pay the sum of $197.91 monthly
The rate(r) of payment is = 12%
The time(t) to pay off her student loan = 4 years
Simple interest (si) amount = $195
But,
[tex]si = \frac{p \times t \times r}{100} [/tex]
Make p the subject of formula,
[tex]p = \frac{si \times 100}{t \times r} [/tex]
[tex]p = \frac{195 \times 100}{4 \times 12} [/tex]
[tex]p = \frac{19500}{48} [/tex]
p = $406.25
406.25 × 48months (4years)
Kim has to pay $406.25 monthly to achieve the loan of $19500.
But she has the balance of $10,000, therefore the amount of remaining = 19500 - 10000
= $9,500
Therefore, the amount she will pay monthly is = 9500/48
= $197.91
Learn more about simple interest here:
https://brainly.com/question/20690803