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Fofino [41]
3 years ago
7

Buffy is considering taking out a 14-year loan with monthly payments of $165 at an APR of 2.3%, compounded monthly, and this equ

ates to a loan of $23,680.66. Assuming that Buffy's monthly payment and the length of the loan remain fixed, which of these is a correct statement?
Mathematics
2 answers:
denis23 [38]3 years ago
6 0

Answer:

The correct answer is B) If the interest rate were 2.9%, the amount of the loan that Buffy is considering would be less than $23,680.66.


8_murik_8 [283]3 years ago
3 0
PVAO=p [(1-(1+I/k)^(-kn) /(I/k)]
P payments 165
I interest rate
K compounded monthly
N time 9

165×((1−(1+0.027÷12)^(−12×14))÷(0.027÷12))
=23,061.76

165×((1−(1+0.029÷12)^(−12×14))÷(0.027÷12))
=24,446.65...correct

165×((1−(1+0.025÷12)^(−12×14))÷(0.027÷12))
=21,637.39

165×((1−(1+0.021÷12)^(−12×14))÷(0.027÷12))
=18,665.68 .....correct
The answers are b d

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