A solar energy system is to be paid for with a loan in the amount of $2700. The interest rate on the loan is 10.5%/year, and the

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3 years ago

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A solar energy system is to be paid for with a loan in the amount of $2700. The interest rate on the loan is 10.5%/year, and the

period is 8 years. The market discount rate is 9.5%/year. a. Compute the annual payment to the lender b. Compute the monthly payment for the same loan assuming that i

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1 answer:

jeyben [28] · Answer 1 · 2022-05-13T01:18:01+03:00

jeyben [28]3 years ago

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Answer:

The annual payment to the lender is $=\$ 515.35$

The monthly payment for the same loan assuming is $=\$ 41.69$

Explanation:

Annual Payment $=\frac{\$ 2,700}{5.2392}$

$=\$ 515.35$

Monthly Interest Rate $Monthly Interest Rate $=\frac{\text { Annual Interest Rate }}{\text { Number of Months in Year }}$$

$=\frac{10.50 \%}{12}$

$=0.875 \%$

Monthly payment:

$=\frac{\$ 2,700}{64.77}$

$=\$ 41.69$

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