P(1+r)n−1r
This formula calculates the total cost of a large purchase with regular payments, taking into account the principal amount (P), interest rate (r), and number of payments (n) over the duration of the loan.
What formula can be used to explain the total cost of a large purchase with regular payments?(1 point) Responses APR12 Start Fraction upper A upper P upper R over 12 End Fraction FV(1+r)n−1r Start Fraction upper F upper V upper A over Start Fraction left parenthesis 1 plus r right parenthesis superscript n minus 1 baseline over r End Fraction End Fraction P(1+r)n−1r upper A times Start Fraction left parenthesis 1 plus r right parenthesis superscript n baseline minus 1 over r End Fraction the number of years⋅12
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