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
mina [271]
3 years ago
9

To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded monthly. If you take a 5-year l

oan and you will be making monthly payments, what is the total amount that must be paid back?
What is the number of time periods (n) you should use in solving this problem?

What rate of interest (i), per period of time, should be used in solving this problem?

Is the present single amount of money (P) known? (Yes or No)

Which time value factor should be used to solve this problem?

What amount must be paid back each month?

What is the total amount that will be paid back over the life of the loan?

What is the total amount of interest you will pay?
Mathematics
1 answer:
PtichkaEL [24]3 years ago
3 0

Answer:

  • n = 60
  • i = 0.625%
  • P = 42000 (known: yes)
  • time value factor?
  • monthly payment = $841.59
  • total paid back = $50,495.40
  • total interest: $8495.40

Step-by-step explanation:

a) 5 years of monthly payments is 5×12 = 60 payments.

__

b) The annual interest rate of 7.5% is divided by the number of months in a year to find the monthly interest rate: 7.5%/12 = 0.625% per month

__

c) The principal amount of the loan is said to be $42,000. This is a known amount (yes).

__

d) The wording "<em>which</em> time value factor" suggests you have choices. Since you are working with a monthly interest rate and a number of months, no additional time value factor is needed. That is, it might be 1. If you were working with an annual rate and a number of years, then the factor might be 12 (or 1/12). You will notice we multiplied years by 12, but multiplied interest rate by 1/12. We don't know what you mean by "time value factor", and we don't know what your choices are, so we cannot help with this part of the question.

__

e) The monthly payment is calculated using the formula ...

  A = Pi/(1 -(1+i)^-n) = $42,000×0.00625/(1 -1.00625^-60) ≈ $841.59

__

f) The total paid back is the product of the number of payments and the amount of each:*

  total repaid = 60 × $841.59 = $50,495.40

__

g) The interest paid is the difference between the amount repaid and the amount borrowed:

  interest = $50,495.40 -42,000 = $8,495.40

_____

* In real life, the final payment will be different, so the total repaid will be slightly different than this. Since the calculated payment amount was rounded down to the nearest cent, the final payment will need to be slightly larger to pay off the loan. A spreadsheet for this loan suggests the final payment may need to be larger by $0.26, so the total repaid and the total interest amount would be larger by this value.

You might be interested in
Dr. Thomas just started an experiment. She will collect data for 6 days. How many hours is this?
Ber [7]
6 days* 24 hours per day= 144 hours

Final answer: 144 hours
4 0
2 years ago
Read 2 more answers
Find the measure of &lt; 1. <br> m &lt; 1 = degrees
Furkat [3]
<1 = 120/2 = 60

answer
60 <span>degrees</span>
8 0
3 years ago
21. Randy owns a computer store. In 1990, he sold 150 monitors. In 2000, he sold 900
lutik1710 [3]

Answer:

y=75x+150

Step-by-step explanation:

Let y represent the number of monitors sold.

Given:

x is the number of years since 1990.

So, for the year 1990, x=0.

For the year 2000, 10 years passed. So, x=10.

Now, monitors sold in 1990 are 150. So, at x=0,y=150

Monitors sold in 2000 are 900. So, at x=10,y=900

Thus, the two points are (0,150) and (10,900).

The slope of a line with points (x_{1},y_{1}) and (x_{2},y_{2})  is given as:

Slope, m=\frac{y_{2}-y_{1}}{x_{2}-x_{1}}

For the points (0,150) and (10,900), the slope is given as:

Slope, m=\frac{y_{2}-y_{1}}{x_{2}-x_{1}}\\ m=\frac{900-150}{10-0}\\ m=75

Now, the y-intercept is the point where x=0. So, the point (0,150) has x value as 0.

So, the y-intercept is 150.

Equation of a line in slope-intercept form is given as:

y=mx+b

Where, m is the slope and b is the y intercept.

Here, m=75 and b=150.

Therefore, the equation that represents the above data is given as:

y=75x+150

7 0
3 years ago
A car travels 150 miles in 2 hours. Which of the following represents a corresponding unit rate? Choose all that apply.
azamat
The answer is C.) 1.25 miles per day
6 0
2 years ago
If you don’t help me your a criminal
STALIN [3.7K]

Answer:

take angle U as reference angle

using sine rule

sin U=opposite/hypotenuse

sinU=42/42

sin U=1

sin 90=1

therefore the value of U is 90 degree

Step-by-step explanation:

6 0
3 years ago
Other questions:
  • Second street bank charges an overdraft fee of $35.00 for insuficient funds transactiond. Malcom's check register showed up bala
    9·1 answer
  • PLEASE HELP ASAP!!! CORRECT ANSWER ONLY PLEASE!!! I CANNOT RETAKE THIS!!
    5·1 answer
  • "Find A and B so that the system below has the solution (1, -1)."
    11·1 answer
  • Given: mAngleADE = 60° and mAngleCDF = (3x + 15)° Prove: x = 15 3 lines are shown. A line with points E, D, C intersects a line
    16·2 answers
  • Solve the following equation<br>sin¢-cos¢=0​
    11·1 answer
  • A box of 12x12 tile contains 12 square feet. the bathroom has 39 sq feet. how many boxes are needed for job
    13·1 answer
  • 18 feet + 120 inches = ________
    10·2 answers
  • How many solutions does this equation have?
    7·2 answers
  • In this question what does the value of ? equal to?
    14·1 answer
  • guys honestly my day hasnt been that good but anyway here your daily free pints, hope you guys are having a good day keep your h
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!