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Serggg [28]
3 years ago
15

URGENT!! I NEED HELP ASAP NOT ROCKY

Mathematics
1 answer:
Anestetic [448]3 years ago
4 0

Answer:

  • $9000

Step-by-step explanation:

<u>Given</u>

  • Monthly payment P = $300
  • Time t = 3 years = 36 months
  • Number of payments n = 36
  • Interest rate r = 12% PA = 1% per month = 0.01 times

<u>Use loan payment formula:</u>

  • P = r(PV) / (1 - (1 + r)⁻ⁿ),
  • where P- monthly payment, PV - present value (amount of the loan), r -rate of interest, n- number of payments

<u>Substitute values and solve for PV:</u>

  • 300 = (0.01*PV) / (1 - (1 + 0.01)⁻³⁶)
  • PV = 300*(1 - 1.01⁻³⁶ )/ 0.01
  • PV = 9032.25 ≈ $9000 (rounded to the nearest hundred dollars)

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