To find Ravi's monthly payment, we can use the following formula:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = monthly payment
P = loan amount
r = monthly interest rate
n = number of months
First, we need to calculate the values of r and n.
r = annual interest rate / 12
r = 6.5% / 100 / 12
r = 0.00541667
n = number of years * 12
n = 7 * 12
n = 84
Now, let's substitute these values into the formula:
M = 48000 * (0.00541667 * (1 + 0.00541667)^84) / ((1 + 0.00541667)^84 - 1)
M = 48000 * (0.00541667 * (1.00541667)^84) / ((1.00541667)^84 - 1)
By calculating this using a calculator, we find that Ravi's monthly payment, rounded to the nearest cent, is $715.69.
To help open up a restaurant Ravi borrowed money from his credit union he took out a personal a mortise loan for $48,000 at an interest rate of 6.5% with monthly payments for a term of seven years for each part do not round any intermediate computations and round your final answers to the nearest cent find webbie's monthly payment
5 answers
If Ravi pays the monthly payment each month for the full term find his total amount to repay the loan
To find the total amount Ravi will repay over the term of the loan, we can multiply the monthly payment by the number of months of the loan.
Total amount = Monthly payment * Number of months
Using the values we calculated previously:
Total amount = $715.69 * 84
By calculating this, we find that Ravi's total amount to repay the loan, rounded to the nearest cent, is $60,201.96.
Total amount = Monthly payment * Number of months
Using the values we calculated previously:
Total amount = $715.69 * 84
By calculating this, we find that Ravi's total amount to repay the loan, rounded to the nearest cent, is $60,201.96.
If Robbie pays the monthly payment each month for the full term find the total amount of interest he will pay
To find the total amount of interest Ravi will pay over the term of the loan, we can subtract the principal loan amount from the total amount to be repaid.
Total interest = Total amount - Principal loan amount
Total interest = $60,201.96 - $48,000
By calculating this, we find that Ravi will pay a total amount of interest, rounded to the nearest cent, is $12,201.96.
Total interest = Total amount - Principal loan amount
Total interest = $60,201.96 - $48,000
By calculating this, we find that Ravi will pay a total amount of interest, rounded to the nearest cent, is $12,201.96.