Rodney borrowed $3500 from the student credit union for 2 years at 8% per annum simple interest with repayments made by equal installments at the the end of each calendar moth. The amount Rodney has to pay at the end of each month to the nearest dollar is:

Explanation

To calculate the monthly payment for a simple interest loan with equal installments, use the formula:Monthly Payment = (Principal + (Principal × Annual Interest Rate × Number of Years)) / Number of PaymentsFor this problem:Principal (P) = $3500, Annual Interest Rate (r) = 8% or 0.08, Number of Years (t) = 2, and Number of Payments = 24 (since payments are monthly for 2 years).Substitute into the formula:Monthly Payment = (3500 + (3500 × 0.08 × 2)) / 24Monthly Payment = (3500 + 560) / 24 = 4060 / 24 = 169.17Rounding to the nearest dollar, the correct monthly payment is $169.Option B ($221), Option C ($280), and Option D ($23) are incorrect because they do not result from the correct application of the formula.