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slamgirl [31]
3 years ago
11

Please help!! With step by step

Mathematics
1 answer:
Sever21 [200]3 years ago
4 0

Answer:

R=\$145.12

Step-by-step explanation:

<u>Compound Interest</u>

This is a well-know problem were we want to calculate the regular payment R needed to pay a principal P in n periods with a known rate of interest i.

The present value PV or the principal can be calculated with

P=F_a\cdot R

Solving for R

\displaystyle R=\frac{P}{F_a}

Where Fa is computed by

\displaystyle F_a=\frac{1-(1+i)^{-n}}{i}

We'll use the provided values but we need to convert them first to monthly payments

i=7\%=7/(12\cdot 100)=0.00583

n=3*12=36

\displaystyle F_a=\frac{1-(1+0.00583)^{-36}}{0.00583}

F_a=32.386

Thus, each payment is

\displaystyle R=\frac{4,700}{32.386}=145.12

\boxed{R=\$145.12}

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