3 years ago

Please help. 10 points

Mathematics

1 answer:

mestny [16]3 years ago

5 0

It's either A or C but correct me if I'm wrong :)

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Answer: $ 40331.781 (Approx)

Step-by-step explanation:

Let Monica pay off $ x in 12 years,

Thus, for 12 years, his present value, PV = $ x

Given, APR of the loan = 8.4% = 0.084

Thus, the monthly rate of the loan, r = 0.084/12 = 0.007

The number of period in 12 years, n = 144

And, the monthly payment, P = $ 990.39

Thus, by the formula,

$\frac{r(PV)}{1-(1+r)^{-n}}=P$

$\frac{0.007 x}{1-(1+0.007)^{-144}} = 990.39$

$\frac{0.007 x}{1-0.36623195919}=990.39$

$\frac{0.007 x}{0.6337680408 } = 990.39$

$0.007 x=990.39\times 0.6337680408$

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Thus, He pay off $ 89668.2185624 of the original amount of the loan.

⇒The amount of loan left after 12 years

= 130,000 - 89668.2185624

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