SOLUTION: You can afford a $250 per month car payment. You've found a 6 year loan at 6% annual interest rate, compounded monthly. How big of a loan amount can you afford? (Enter numeric answ

Question 1121991: You can afford a $250 per month car payment. You've found a 6 year loan at 6% annual interest rate, compounded monthly. How big of a loan amount can you afford? (Enter numeric answers to 2 decimal places.)
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
You can afford a $250 per month car payment. You've found a 6 year loan at 6% annual interest rate, compounded monthly. How big of a loan amount can you afford?
:
The monthly payment formula: mp = : where:
mp = monthly payment (250)
P = amt of loan
r = interest in decimal form (.06)
n = periods per year (12)
t = time in years (6)
:
= 250
:
= 250
:
P* = 250
:
P* = 250
.016573P = 250
P =
P = $15,084.78
:
:
I checked this answer using the finance feature on the ti83, they got $15,084.88
a 10 cent difference that I am not going to look for. CK

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