Bryan agrees to pay back a $50,000 loan over a 10-year period. If the interest rate is 8%, what will his monthly payments be?
Detailed Explanation
The interest on a 50,000 loan is 50,000 × 8% = 4,000. The amount that must be paid back is 50,000 + 4,000 = 54,000. There are 120 months in 10 years. If this is to be paid over a 10-year period, each monthly payment will be 54,000/120 =450.
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