assume Alex borrowed $280 on his personal line of credit credit. interest charge at a rate...

assume Alex borrowed $280 on his personal line of credit credit. interest charge at a rate of 13% but calculated on a daily basis Alex is required to pay a minimum of 5% of the remaining loan balance every month. what would be Alex's first monthly loan payment assume a 30 day month and a 365 days a year. round your answer to 2 decimal places

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Expert Solution

Loan Amount = $280

Interest rate = 13%

Interest for the first month = Loan balance * Interest rate * 30 / 365

= $280 * 13% * 30 / 365

= $2.991780882

First monthly loan payment = [Loan amount + Interest for the first month] * 5%

= [$280 + $2.991780882] * 5%

= $14.1495891

= $14.15

Therefore, Alex's monthly loan payment is $14.15

jeff jeffy answered 1 year ago

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