Help with Flat Rate Loans (1 Viewer)

[guy123]

1) Calculate the repayment for the following personal loans

$28400 for a new car to be repaid quarterly over 3 years
P=28400
r=9.25%
n=3

28400x0.0925x3 = 7881

I'm not sure how to work out the repayment, and i'm 100% sure i'm not doing it correctly.

The answer says - 3023.42

 

[Carrotsticks]

The interest rate is 9.25% p.a NOT compounded, so the total interest over 3 years is:



So our total amount OWNING after 3 years is:



We repay this quarterly over 3 years, meaning there are 3 x 4 = 12 repayments in total. So we divide our answer by 12:

 

[guy123]

Cheers man, you saved me