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vredina [299]
3 years ago
8

Suppose you borrow 13,000 for four years at 7% toward the purchase of a car.

Mathematics
1 answer:
dangina [55]3 years ago
5 0
Amount borrowed, P = 13000
Interest, i = 0.07/12 per month
number of periods (months),  n = 4*12 = 48

Monthly payment, 
A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}
=\frac{13000(.07/12*(1+.07/12)^{48}}{(1+.07/12)^{48}-1}
=311.30   (to the nearest cent)
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