To find Keith's monthly payment, we can use the formula for calculating the fixed monthly payment for an amortized loan:
P = (r * PV) / (1 - (1 + r)^(-n))
Where:
P = Monthly payment
r = Monthly interest rate
PV = Present value (loan amount)
n = Total number of monthly payments
First, we need to calculate the monthly interest rate:
r = 5.7% / 100 / 12
r = 0.057 / 12
r = 0.00475
Next, we substitute the given values into the formula:
P = (0.00475 * $50,000) / (1 - (1 + 0.00475)^(-20*12))
Calculating the exponent:
1 + 0.00475 = 1.00475
-20 * 12 = -240
P = (0.00475 * $50,000) / (1 - 1.00475^-240)
Using a calculator, we find:
P ≈ $346.12
Therefore, Keith's monthly payment is approximately $346.12.
To help pay for art school Keith borrowed money from an online lending company he took out a personal amortized loan for $50,000 at an interest rate of 5.7% with monthly payments for a term of 20 years for each part do not round any intermediate computations and round your final answers to the nearest cent find Keith's monthly payment
1 answer