Instructor Note

Simple interest on an investment or loan is computed by the formula $I=Prt,$ where $P$ is the amount of the principal, $r$ is the annual interest rat and $t$ is the time in years. Simple interest is based only on the original principle. $($etext $5\mathrm{.}1$ p $365)$

Martin wants to buy a new bedroom set that costs $$1895$ including tax. Unfortunately, he doesn't have $$1895,$ so he secures a $2-$year loan from the furniture store at $8\%$ interest to be repaid in $24$ equal monthly installments. Find the monthly payment. Round your intermediate steps to the nearest cent.

The monthly payment is $