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erica [24]
3 years ago
9

Inez Alexander has a car loan of $425 per month at 5.5% annual interest rate. She would like to pay off the car one year early.

About how much will her payoff be
Mathematics
1 answer:
Kitty [74]3 years ago
7 0
The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷( r/k)]
Pv present value?
PMT monthly payment 425
R interest rate 0.055
K compounded monthly 12
T time 1 year

Pv=425×((1−(1+0.055÷12)^(
−12))÷(0.055÷12))
=4,951.26
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For this case we have the following vertices:
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Answer:

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