2 years ago

PLZZ HELP!! ASAP

Mathematics

1 answer:

zimovet [89]2 years ago

5 0

as for my ans is C...

can you correct me if im wrongX

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Ian has the option of purchasing or renting a home. The purchase option requires a loan of $100,000 for a 20-year term at a 4.9%

jenyasd209 [6]

Answer:

The correct answer to the following question will be "70.56".

Step-by-step explanation:

The given values are:

Loan requires, PV = $100,000

Years = 20

Number of months, n = 240

Rate interest = 4.90000%

Monthly rate, r = 0.408333%

Monthly rental payment = $725

As we know,

$PV=PMT\times (\frac{1}{r})\times [1-[\frac{1}{(1+r)^n}]]$

On putting the values in the above formula, we get

⇒ $100000=PMT\times (\frac{1}{0.004083333})\times [1-(\frac{1}{(1+0.004083333^{240})})]$

⇒ $100000=PMT\times 152.8014557$

⇒ $PMT=\frac{100000}{152.8014557}$

⇒ $PMT=654.44$

Now,

$Saving \ Per \ Month =Rent \ per \ month-PMT$

On putting the values, we get

⇒ $=725-654.44$

⇒ $=70.56$

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