Asked by Anonymous
Q: A couple borrow rs.10,000 to buy a car. The loan agreement specifies that monthly payement are to be made for 4 years. The annual interst rate is 10%. Determine the monthly payement?
Answers
Answered by
MathMate
i=interest rate per period(assumed compounded each period)
P=monthly payment
n=number of payments
A=amount borrowed
A(1+i)^n=P((1+i)^n - 1)/(i)
For
i=0.1/12=1/120
A=10000
n=48
Monthly Payment, P
=A(1+i)^n*(i) / ((1+i)^n - 1)
=10000(121/120)^48*(1/120) / ((121/120)^48-1)
=10000 * 0.025363
=253.63
P=monthly payment
n=number of payments
A=amount borrowed
A(1+i)^n=P((1+i)^n - 1)/(i)
For
i=0.1/12=1/120
A=10000
n=48
Monthly Payment, P
=A(1+i)^n*(i) / ((1+i)^n - 1)
=10000(121/120)^48*(1/120) / ((121/120)^48-1)
=10000 * 0.025363
=253.63
Answered by
REHAN
THNX!!!
Answered by
MathMate
You're welcome!
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.