Help - Business Maths Qu

[lem]

Hey Im currently stuck on this effective rates question. They've asked for the monthly instalments and im not sure what to do.
I tried putting into the annuities form and also tried to divide the loan by the no of repayments but that didnt seem to work unless i did something wrong

Ive got my P= 5000 r =12.5pa n = 9/12 *52 = 39


Thanks

[Stick]

Alright, so with part (a), the simple interest formula is used (hence why you probably got it wrong with annuities).

I=(PrT)/100
I=[5000*(12.5/12)*9]/100
I=$468.75
A=5000+468.75=$5468.75

Now, remember that 1 month is not the same as 4 weeks. However, 9 months is 3 quarters of a year, so we can work out 3 quarters of 52 weeks.

0.75*52=39

Now we simply divide the total amount by this number.

Q=5468.75/39=$140.22 (to the nearest cent)

[lem]

Thanks stick
But I think you're wrong, the answer says 151.90 for a

[Stick]

Yep, they've assumed 1 month has 4 weeks.

A=$5468.75
N=9*4=36
Q=5468.75/36=$151.91

I can assure you that the above will not be an acceptable response in the exam. Although, you would really have to know your stuff in order to get that, so I don't think they would put anything as ambiguous.

[lem]

Oh okay thank you so much Stick