Jayden wants to take out a loan of $2,500 with interest that compounds monthly. Use the formula A = P(1 + rn)n∗t to find which o
2 answers:
You might be interested in
Case 11: Amount of monthly payment is $551.25
Case 12: Amount of monthly payment is $1361.77
Case 13: Amount of monthly payment is $814.03
Case 14: Amount of monthly payment is $656.25
Case 15: Amount of monthly payment is $897.6
Case 16: Amount of monthly payment is $2018.26
<u>Step-by-step explanation:</u>
Case 11:
Step 1: converting your annual interest rate to a monthly interest rate by dividing by 12
Monthly rate =
Step 2: add 1 to the monthly rate
1+0.00666 = 1.00666
Step 3: multiply the number of years in the term of the mortgage by 12 to calculate the number of monthly payments you’ll make
The number of monthly payments = 30(12) = 360 months
Step 4: raise the result of 1 plus the monthly rate to the negative power of the number of monthly payments
= 0.0936
Step 5: subtract that result (obtained from step 4) from 1
1 – 0.0936 = 0.906
Step 6: divide the monthly rate by the result obtained from step 5
Step 7: multiple the result by the amount you borrowed ($75,000).
Amount of monthly payment= 0.00735(75000) = $551.25
Case 12:
Step 1: converting your annual interest rate to a monthly interest rate by dividing by 12
Monthly rate =
Step 2: add 1 to the monthly rate
1+0.00916 = 1.00916
Step 3: multiply the number of years in the term of the mortgage by 12 to calculate the number of monthly payments you’ll make
The number of monthly payments = 20(12) = 240 months
Step 4: raise the result of 1 plus the monthly rate to the negative power of the number of monthly payments
Step 5: subtract that result (obtained from step 4) from 1
1 – 0.1121 = 0.8879
Step 6: divide the monthly rate by the result obtained from step 5
Step 7: multiple the result by the amount you borrowed ($132,000).
Amount of monthly payment= 0.0103(132000) = $1361.77
Similarly,
Case 13:
Monthly rate =
1+0.0075 = 1.0075
The number of monthly payments = 25(12) = 300 months
1 – 0.1063 = 0.8937
Amount of monthly payment= 0.0084(97000) = $814.03
Case 14:
Monthly rate =
1+0.00666 = 1.00666
The number of monthly payments = 30(12) = 360 months
1 – 0.09166 = 0.9083
Amount of monthly payment= 0.0073(89500) = $656.25
Case 15:
Monthly rate =
1+0.00833 = 1.00833
The number of monthly payments = 10(12) = 120 months
1 – 0.36955 = 0.6304
Amount of monthly payment= 0.0132(68,000) = $897.6
Case 16:
Monthly rate =
1+0.0075 = 1.0075
The number of monthly payments = 15(12) = 180 months
1 – 0.2605 = 0.7395
Amount of monthly payment= 0.01014(199,000) = $2018.26