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Ket [755]
3 years ago
8

Marie wants to purchase a car and finance her purchase with a 4 year loan at 7% interest. If she wants her payments to be $250 p

er month, how much can she finance with this loan?
Mathematics
1 answer:
saveliy_v [14]3 years ago
4 0

Answer:

F = $13,802.31

she can finance $13,802.31 with this loan.

Step-by-step explanation:

Given;

Rate r = 7% = 0.07

Time t = 4 years

Payment per month MP = $250

Number of months per year n = 12

This can be solved using compound interest for future value series formula;

F = future value

F = MP(((1 + r/n)^(nt) - 1)/(r/n))

Substituting the given values, we have;

F = $250(((1 + 0.07/12)^(12×4) - 1)/(0.07/12))

F = $13,802.31

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