Given:
Loan amount =$1000
Rate =8.9%
Time =21 months,
[tex]\begin{gathered} 1\text{ year =12 months} \\ 21\text{ months=}\frac{21}{12}=1.75\text{ years} \end{gathered}[/tex]First calculate the total interest,
[tex]\begin{gathered} I=\frac{P\times R\times T}{100} \\ I=\frac{1000\times8.9\times1.75}{100} \\ I=155.75 \end{gathered}[/tex]Answer: Total interest is $155.75.
The monthly payment is calculated as,
[tex]\text{Monthly payment=}\frac{\text{P+I}}{total\text{ number of payments}}=\frac{1000+155.75}{21}=55.04[/tex]Answer: monthly payment is $55.04.
