Question

Which of these expressions can be used to calculate the monthly payment for

Answer 1

Answer:

The expression would be A/nt  =  $\frac{P(1 + \frac{r}{n})^{nt}}{nt}$

$\frac{215,000( 1+ 0.054/12)^{12 * 20} }{12 * 20}$

Step-by-step explanation:

In this question, we are to find an expression that can be used to calculate the monthly payment.

Firstly, before we can write the expression, we need to know the  amount payable at the end of the loan tenure. To find this, we will need to use the compound interest formula.

Mathematically, the amount payable at the end of loan tenure will be;

A = P( 1+ r/n)^nt

Where A is the amount payable which we want to calculate

P is the amount borrowed or the principal which is $215,000

r is the rate which is 5.4% = 5.4/100 = 0.054

n is the number of times interest is compounded per year which is 12 according to the question(monthly)

t is the number of years for the loan tenure which is 20 years according to the question

Now, we plug these value;

A = 215,000( 1+ 0.054/12)^(12 × 20)

A = 215,000(1 + 0.0045)^240

A = 215,000(1.0045)^240 = $631,574

The monthly payment would now be; the amount payable divided by the total number of months = A/nt = 631,574/240 = $2,632

Answer 2

It's $215000x0.0045 (1+0.0045)^240 ÷ (1+0.0045)^240 -1

I'm taking the test rn ( a p e x)