Steve borrows 2500 dollars, at 12 percentage compounded monthly, to buy a new 4k LED tv. If the loan is to be paid back over two years, what is his monthly payment? Steve pays back the same amount every month.
I figured since it's monthly I divide the interest rate of 12% with 12 (12 months) which yields 1%.
a[0]=2500 as principal
a[n]=1.01*a[n-1]
a[n]=a[n-1]+0.01*a[n-1]
Hint
$\Delta a(n)=1/100 a(n) \to a(n)= k(1+1/100)^n \to a(n)= 2500 (1+1/100)^n$