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guajiro [1.7K]
3 years ago
10

Using technology, determine the monthly payment on a 35 month loan of $28,000 at 8.1% compounded annually. Round you answer to t

he nearest cent.
Mathematics
1 answer:
sdas [7]3 years ago
7 0
Present Value of an annuity is given by the formular
PV = P(1 - (1 + r)^-n)/r; where PV = $28,000, r = 0.081/12 = 0.00675, n = 35 and P is the periodic (monthly) payment.

P = PVr/(1 - (1 + r)^-n) = (28,000 x 0.00675)/(1 - (1 + 0.00675)^-35) = 189/0.2098 = 900.90

Therefore, the monthly payment is $900.90
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