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Law Incorporation [45]
3 years ago
10

Question 9 (5 points)

Mathematics
1 answer:
Ad libitum [116K]3 years ago
3 0

9514 1404 393

Answer:

  $3291.60

Step-by-step explanation:

If the loan is amortized in the usual way, the monthly payment is ...

  A = P(r/12)/(1 -(1 +r/12)^(-12t)) . . . . . loan of P at rate r for t years

  A = $15,000(0.081/12)/(1 -(1 +0.081/12)^(-12·5)) ≈ $304.86

The total of payments is ...

  (60 months) × ($304.86/month) = $18,291.60

Then the profit to the bank is ...

  $18,291.60 -15,000 = $3,291.60 . . . bank profit

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