Asked by frustrating
I keep getting the wrong answer on this. My answers have been $243.18 and another was $247.23. ugh.. neither is right, so help plz.
A homeowner planning a kitchen remodeling can afford a $200 monthly payment. How much can the homeowner borrow for 3 years at 5%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)
A homeowner planning a kitchen remodeling can afford a $200 monthly payment. How much can the homeowner borrow for 3 years at 5%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)
Answers
Answered by
Reiny
so you are looking for the Present Value of 36 payments of $200 at a monthly rate of .00416666
PV = 200 (1 - 1.00416666^-36)/.00416666
= 6673.14
PV = 200 (1 - 1.00416666^-36)/.00416666
= 6673.14
Answered by
frustrating
thank you so much. I am not sure where my figures were coming from at all. Thanks again!
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