Given:
Principal(p) = $10 000
rate(r) = 12% = 0.12
Time(t) =12 months = 1 (year)
n= 12
Using the formula below:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Substitute the values and evaluate:
[tex]A=10000(1+\frac{0.12}{12})^{12\times1}[/tex][tex]=10000(1+0.01)^{12}[/tex][tex]=10000(1.01)^{12}[/tex][tex]=10000\times1.126825[/tex][tex]=11268.25[/tex]Amount to be paid is $11,268.25
Monthly payment = $11,268.25 /12 = $939.02
Therefore, monthly payment needed to pay off the loan is $939.02
