Given:
The principal amount borrowed, P=$1190.
The annual interest rat, R=10%.
The number of years, N=3.
The interest on the principal amount at add on interest rate R for N years is,
[tex]\begin{gathered} I=\frac{PRT}{100} \\ =\frac{1190\times10\times3}{100} \\ =357 \end{gathered}[/tex]Now, since there are 12 months in year, the number of months in 3 years is,
[tex]N=3\times13=36[/tex]The sum of interest and principal is to be repaid.
Each month we have to make payment. So, the monthly payment is,
[tex]\begin{gathered} A=\frac{P+I}{N} \\ =\frac{1190+357}{36} \\ =\frac{1547}{36} \\ =42.972 \end{gathered}[/tex]Therefore, the monthly payment is $42.97, rounded to the nearest cent.
