sachinrelan wrote:
Louie takes out a three-month loan of $1000. The lender charges him 10% interest per month compunded monthly. The terms of the loan state that Louie must repay the loan in three equal monthly payments. To the nearest dollar, how much does Louie have to pay each month?
A. 333
B. 383
C. 402
D. 433
E. 483
loan repaid per month: 1000/3 = 333
first 10% 1000 = 100
second 10% 1000-333 = 67
third 10% 1000-333-333 = 33
total interest owed: 200/3 = 67
equal payments per month: 333+67=~400
Answer (C).
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