1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga2289 [7]
3 years ago
13

You plan on financing a new road bike for $2,500. The bike shop offers a 13.5% APR for a 24 month loan. Use this information, an

d the table above, to determine the monthly payments. Round your answer to the nearest cent.
Mathematics
1 answer:
Mila [183]3 years ago
6 0
This question can be approached using the present value of annuity formula. The present value of annuity is given by PV=P\left( \frac{1-\left(1+ \frac{r}{t} \right)^{-nt}}{ \frac{r}{t} } \right), where: PV is the present value/amount of the loan, P is the periodic (monthly in this case) payment, r is the APR, t is the number of payments in one year and n is the number of years.

Given that the<span> financing is for a new road bike of $2,500 and that the bike shop offers a 13.5% APR for a 24 month loan.

Thus, PV = $2,500; r = 13.5% = 0.135; t = 12 payments (since payment is made monthly); n = 2 years (i.e. 24 months)

Thus,

</span>2500=P\left( \frac{1-\left(1+ \frac{0.135}{12} \right)^{-2\times12}}{ \frac{0.135}{12} } \right) \\  \\ =P\left( \frac{1-\left(1+ 0.01125 \right)^{-24}}{ 0.01125 } \right)=P\left( \frac{1-\left(1.01125 \right)^{-24}}{ 0.01125 } \right) \\  \\ =P\left( \frac{1-0.764531}{ 0.01125 } \right)=P\left( \frac{0.235469}{ 0.01125 } \right)=20.9306P \\  \\ \Rightarrow P= \frac{2500}{20.9306} =119.44
<span>
Therefore, his monthly payment is $119.44</span>
You might be interested in
A three-digit lottery ticket using the numbers 0 to 9 has how many possible combinations?
igor_vitrenko [27]

Answer:

720

Step-by-step explanation:

If order mattered, we would say select the first number (10 choices), then the second (9 choices) then the third (8 choices). So there would be 10 x 9 x 8 = 720 possible choices.

7 0
2 years ago
Read 2 more answers
Complete the equations to prove that vertical angles always have equal measure. In terms of b and a numberin degrees, \purple c=
Mila [183]
Idk know im sorry somwhere between 1 1 2

7 0
3 years ago
Read 2 more answers
HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
frutty [35]

Answer:

m∠7=34°

Step-by-step explanation:

m∠2=m∠8=146° because alternate interior angles are congruent.

m∠7=180-m∠8=34° because it is a linear pair.

3 0
3 years ago
Read 2 more answers
Please answer this one, I’m in math grade 9 having online classes i need your help for this one. Asap thanksss
ICE Princess25 [194]

Answer:

1) b

2)d

3)a

Step-by-step explanation:

1) count the number of different betwwen 2 cycles

2) take 5/160 time 8

3) take 12/9.6 then times 6.4

8 0
3 years ago
rding to linear pattern. If the initial value of the vehicle is $26,000, and the value ten years later is $0, what will the depr
Verdich [7]
The answer will be 5,200
3 0
3 years ago
Other questions:
  • What is 72635272727262526 x 28262526161718 x 1.600082 x 8162525151515167475803816
    13·1 answer
  • When calculating the effective rate of a loan, which statement or statements must be true if n is equal to 1?
    15·2 answers
  • Is the square root 17 a
    13·1 answer
  • 2 2/3× 1 1/3 , use an area modle to solve
    12·1 answer
  • 4 Sam was asked to place the numbers shown below in order from least to greatest.
    9·1 answer
  • Solve the equation sin2x = 3cos2x. The value of x that satisfies the equation if x lies in the second quadrant is °. The value o
    9·1 answer
  • The distance between bay town and oak glen is 175 miles. if the equation y=-x+175 represents the distance left to travel to oak
    9·2 answers
  • Additional mathematics
    14·1 answer
  • If possible, can anyone help with these two? --sorry, im dumb ;-;-- THANKS!
    15·1 answer
  • POSSIBLE POINTS 100
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!