Natasha needs to borrow $500 until her next paycheck to purchase a wedding gift. She goes to a Friendly Fred's Pawnshop and puts up a family heirloom worth $4000
as collateral. Friendly Fred will lend her up to 25% of the value of her collateral. How much
Is Friendly Fred willing to lend Natasha? Is this enough to cover the cost of the wedding
Gift?
O $1,000, yes
o $1,000.no
$400. yes
O $400, no

answer: the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

step-by-step explanation:

the given rate of interest i= 85%

in calculating the monthly payment for a loan with an interest rate compounded monthly, the value of the interest rate per period we use in the formula must be in decimal form.

to convert it in decimal, we divide it by 100, we get

hence, the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.