Question

In the monthly payment formula

Answer 1

The value of interest rate (r) is equal to 0.054‬.

Given the following data:

• Interest rate = 5.4%

To determine the value of interest rate (r):

How to calculate monthly payment.

Mathematically, the monthly payment on a loan is given by this formula:

$M = \frac{Pr(1+r)^n}{(1+r)^{n-1}}$

Where:

• P is the principal or amount borrowed.

• r is the interest rate.

• M is the monthly payment.

• t is the time or number of years.

• n is the number of times it's compounded.

Generally, the interest rate (r) is given as a percentage and as such should be divided by 100.

$r = \frac{5.4}{100}$

r = 0.054‬.

Read more on interest rate here: brainly.com/question/24341207

Answer 2

Answer: B. 0.0045

Step-by-step explanation: Disregard the answer above. I took the test and got this answer correct.