To calculate Shane's monthly payment for his personal amortized loan, we can use the formula for loan amortization:
PMT = (P * r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
PMT = monthly payment
P = principal amount borrowed ($43,000)
r = monthly interest rate (6.55% / 100 / 12)
n = total number of payments (8 years * 12 months/year)
First, let's calculate the monthly interest rate:
r = 6.55% / 100 / 12 = 0.005458333
Next, calculate the total number of payments:
n = 8 years * 12 months/year = 96
Now, let's substitute these values into the formula:
PMT = (43,000 * 0.005458333 * (1 + 0.005458333)^96) / ((1 + 0.005458333)^96 - 1)
Using a calculator, the monthly payment (rounded to the nearest cent) is approximately $577.84. Therefore, Shane's monthly payment for the loan is $577.84.
To help open up a wine bar Shane borrowed money from his credit union he took out a personal amortized loan for 43,000 at an interest rate of 6.55% with monthly payments for a term of 8 years for each part do not round any intermediate computations and round your final answers to the nearest cent what is shins monthly payment
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