Sam will need to spend $600 each month for 12 years to pay off all installments.
Explain the term monthly installments?
- A set payment made by such a borrower to a lender on a predetermined date each month is known as an equated monthly installment (EMI).
- Each month, EMIs are applied both to interest and principle in order to completely pay off the loan within a given time frame.
For the stated question-
Total amount = $96,400
Remaining amount = $96,400 - $10,000 = $86,000.
monthly installments = $600
Thus,
Number of months = Remaining amount / monthly installments
Number of months = $86,000/ $600
Number of months = 144 months
Number of months = 144/12 = 12 years.
Thus, Sam will need to spend $600 each month for 12 years to pay off all the installments.
To know more about the monthly installments, here
https://brainly.com/question/29475683
#SPJ1
