The formula is I= 2YC
________
M(N+1)
y = the number of payments made in a year.
m = the amount financed or how much money was loaned.
c = the total amount of interest charges.
n = the number of payments for the whole loan.
I = interest
OMG I CAN NOT get this !!!!
Purchase price of article = $495
Down payment = $50
Number of payments = 36
True annual interest rate = 18%
Monthly payment amount = $
4 answers
Here's my solution:
495 - 50 = 445 >> amount financed
Interest = PRT
Interest = 445 * 0.18 * 3
I = 240.30
(240.30 + 445) / 36 = $19.04 >> monthly payments
495 - 50 = 445 >> amount financed
Interest = PRT
Interest = 445 * 0.18 * 3
I = 240.30
(240.30 + 445) / 36 = $19.04 >> monthly payments
I have the exact same question but the only answers listed for the multiple choice question are:
A- 12.55
B-14.59
C-14.84
D-15.79
A- 12.55
B-14.59
C-14.84
D-15.79
D. 15.79
2 answers