The monthly payments made by Vijay's parents will be $4280.
The formula used to calculate the monthly payments made for Vijay's tuition fees is:
[tex]m=\frac{F(100+r)}{100n}[/tex]
where
Since we are looking for the monthly payment, we will take
[tex]F= 36000\\r=7\\n=9[/tex]
Substituting into the formula.
[tex]m=\frac{F(100+r)}{100n}[/tex]
[tex]m=\frac{F(100+r)}{100n}\\\\m=\frac{36000 \times (100+7)}{100\times 9}\\m=4280[/tex]
Above calculation used a formula. However, the formula was arrived at using the below reasoning, and algebraic simplification.
Vijay's college tuition fees would have just been $36000, if his parents just paid in full. However, they decided to pay the fees over a period of 9 months. This carries with it an extra 7% interest.
After 9 months, they would pay a total amount of
Tuition Fee + Interest Amount
or
[tex]36000+\frac{7}{100}\times36000\\=36000+2520\\=38520[/tex]
Since the $38520 is spread over 9 months, each monthly payment will be
[tex]\frac{38520}{9}=4280[/tex]
So, Vijay's parents will need to make monthly payments of $4280 each.
Another solved problem on monthly payments on loans can be found in the link below
https://brainly.com/question/20595766
