Question

Can someone help me with answer C? its the last one i need

Answer 1

Using the monthly payment formula, it is found that her down payment should be of $1,419.

What is the monthly payment formula?

It is given by:

$A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}$

In which:

• P is the initial amount.

• r is the interest rate.

• n is the number of payments.

For this problem, the parameters are:

A = 250, r = 0.072, n = 72.

Hence:

r/12 = 0.072/12 = 0.006.

We solve for P to find the total amount of the monthly payments, hence:

$A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}$

$P\frac{0.006(1.006)^{72}}{(1.006)^{72}-1} = 250$

0.0171452057P = 250

P = 250/0.0171452057

P = $14,581.

The total payment is of $16,000, hence her down payment should be of:

16000 - 14581 = $1,419.

More can be learned about the monthly payment formula at brainly.com/question/26476748

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