Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.
Assume that you take out a $3000 loan for 30 months at 8.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)
$

Answer 1

Answer:

111.35

Step-by-step explanation:

effective rate: .085/12= .007083333333333333

payment=x

$3000=x(\frac{1-(1+.007083333333333333)^{-30}}{.007083333333333333})\\x=111.35$

Answer 2

Step-by-step explanation:

111.35

Step-by-step explanation:

effective rate: .085/12= .007083333333333333

payment=x

\begin{gathered}3000=x(\frac{1-(1+.007083333333333333)^{-30}}{.007083333333333333})\\x=111.35\end{gathered}

3000=x(

.007083333333333333

1−(1+.007083333333333333)

−30

)

x=111.35