The monthly payment for an $8,720 loan at 12.5 percent for 15 years is $312.84
How to calculate the compound interest
The formula for calculating the compound interest is expressed as:
A = P(1+r/n)^nt
Given
P = $8720
r = 12.5% = 0.125
n = 12
t = 15
Substitute
A = 8720(1+0.125/12)^180
A = 1.8622 * 8720
A = $56,312.74
Monthly payment = 56,312.74/180
Monthly payment = 312.84
Hence the monthly payment for an $8,720 loan at 12.5 percent for 15 years is $312.84
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