## John and Sue took out loans whose monthly installments were determined by using the formula above. Both loans had the

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### John and Sue took out loans whose monthly installments were determined by using the formula above. Both loans had the

by Gmat_mission » Thu Apr 29, 2021 7:39 am

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If a loan of $$P$$ dollars, at an interest rate of $$r$$ percent per year compounded monthly, is payable in n monthly installments of $$m$$ dollars each, then $$m$$ is determined by the formula

$$m=\dfrac{\dfrac{rP}{1200}}{1-\left(1+\dfrac{r}{1200}\right)^{-n}}$$

John and Sue took out loans whose monthly installments were determined by using the formula above. Both loans had the same interest rate and the same number of monthly installments. John's monthly installment was what percent of Sue's monthly installment?

(1) The amount of Sue's loan was $$4$$ times the amount of John's loan.

(2) Sue's monthly installment was $$4$$ times John's monthly installment.