Question

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.)

Answer 1

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

Answer 2

thank you so much. I am not sure where my figures were coming from at all. Thanks again!