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DanielleElmas [232]
3 years ago
11

What is the maximum amount of a loan you can get if you pay $700 each month at a yearly rate of 0.89% for 10 years?

Mathematics
1 answer:
mario62 [17]3 years ago
3 0

Answer:

$785.17

Step-by-step explanation:

Given data

PV is the loan amount

PMT is the monthly payment

i is the interest rate per month in decimal form (interest rate percentage divided by 12)

n is the number of months (term of the loan in months)

PMT =$700

n = 10 years

i = 0.89%

The formula for the loan amount is

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μ

p

^

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​ =p=0.56

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)

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.

4

4

)

5

0

≈

0

.

0

7

0

2

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​

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P(

p

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^

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P

(

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6

)

=

P

(

z

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P(

p

^

​ >0.6)=P(z>

0.0702

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