If a family borrows $\$ 21,504$ for an addition to their home, and the loan is to be paid off in monthly payments over a period of 8 years, how much should each payment be? (Interest has been included in the total amount borrowed.)
Round your answer to the nearest cent, if necessary.
Answer
Thus, each payment should be approximately $\boxed{\$223.79}$.
Step 1 ：First, we need to understand that the total amount borrowed already includes the interest. So, the total amount to be paid back is $\$21,504$.
Step 2 ：Next, we need to calculate the number of payments. Since the loan is to be paid off in monthly payments over a period of 8 years, there are $8 \times 12 = 96$ payments in total.
Step 3 ：Finally, we divide the total amount by the number of payments to find out how much each payment should be. So, each payment should be $\frac{\$21,504}{96} \approx \$223.79$.
Step 4 ：Thus, each payment should be approximately $\boxed{\$223.79}$.
