Question

Please help!! With step by step

Answer 1

Answer:

$R=\ 145.12$

Step-by-step explanation:

Compound Interest

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

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

$\boxed{R=\ 145.12}$