Asked by HM

charlie can not remember how much he financed to buy his car..

he does remember that his monthly payment is $200 and his add on interest rate was 12% and he made a total of 18 payments.


find the amount of his loan to the nearest penny.


I keep getting over a 4000 and the actual choices are 1285.71
1139.24
3050.85

Help me please.
Answered by Writeacher
Assistance needed.
Answered by HM
Yes please fast.

I just tried it again and I got around 3951 this time.

There is a choice to click no choice correct too.
Answered by bobpursley
His term is 18 periods, at a period interest rate of 12/18

200*18=LAMT(1+.12/18)^18=LAMT*1.12704794

LAMT=3600 / 1.12704794 = 3194.18533
Answered by HM
Wont it be 18/12 ?
Answered by HM
is that the correct answer?
Answered by bobpursley
The above is interest compounded monthly. Here it is compounded annually.

200*18=LAMT(1+.12)^1.5=LAMT*1.185

lamt= 3600/1.185=3037.21
Answered by HM
What is LAMT?
and there is no option of these two answers that you just gave me :/

Answered by Writeacher
You wrote, "There is a choice to click no choice correct too."

So choose "no choice" when the numbers don't match.
Answered by bobpursley
LAMT is meant to be loan amount.