SOLUTION: Jack agrees to pay back a $50,000 loan over a 10year period. If the interest rate is 8%, what will his monthly payment be? I got $4000 i donk know if its right.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Jack agrees to pay back a $50,000 loan over a 10year period. If the interest rate is 8%, what will his monthly payment be? I got $4000 i donk know if its right.       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 458032: Jack agrees to pay back a $50,000 loan over a 10year period. If the interest rate is 8%, what will his monthly payment be?

I got $4000 i donk know if its right.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
There are +10%2A12+=+120+ months in +10+ years
The amount of principle he has to pay back each month is:
+50000+%2F+120+=+416.67+
The interest due is +.08%2A50000+=+4000+
Over 10 years that is +4000%2F120+=+33.33+ per month
(principle + interest) = monthly payment
+416.67+%2B+33.33+=+450+
Jack's monthly payment is $450
Hope I got it