You borrow $44,000 from the bank and agree to make equal monthly payments for the next 18 months.  If the interest rate is 1% per month, how much are the monthly payments?

We can solve this problem using the **amortization formula** for monthly payments, which is given by:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ M $ is the monthly payment.
- $ P $ is the loan amount (principal).
- $ r $ is the monthly interest rate (as a decimal).
- $ n $ is the number of payments (months).

### Given:
- $ P = 44,000 $
- $ r = 0.01 $ (since the interest rate is 1% per month)
- $ n = 18 $ months

We will now substitute these values into the formula and calculate the monthly payment.

\[
M = \frac{44,000 \cdot 0.01 \cdot (1 + 0.01)^{18}}{(1 + 0.01)^{18} - 1}
\]

Let me calculate this for you.The monthly payment for the loan would be approximately **$2,683.21**.

Would you like further details or have any questions about this? Here are some related questions you may find interesting:

1. How much interest will you have paid by the end of the loan term?
2. How does the payment change if the interest rate increases to 2% per month?
3. What happens if you extend the loan term to 24 months?
4. What is the total amount paid over the 18 months?
5. How much would you save with no interest?

**Tip:** When borrowing, always check the total cost of the loan, including interest.

You borrow $44,000 from the bank and agree to make equal monthly payments for the next 18 months. If the interest rate is 1% per month, how much are the monthly payments?

Learn how to calculate the monthly payments for a $44,000 loan with a 1% monthly interest rate over 18 months using the amortization formula. This solution covers key concepts in loan repayment and interest calculation, making it suitable for college-level students.

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