SOLUTION: Bob requires a loan of $39,000 to buy a sport utility vehicle. His bank offers financing at 8.4% compounded monthly, for a term of 5 years, payable monthly.
What is the total co
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Question 1163688: Bob requires a loan of $39,000 to buy a sport utility vehicle. His bank offers financing at 8.4% compounded monthly, for a term of 5 years, payable monthly.
What is the total cost of this loan?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
Let 
represent the Monthly Payment for a fully amortized loan for a principal amount of 
at 
rate of interest per month expressed as a decimal for 
months.
^n}{(1\,+\,r)^n\ -\ 1})
Plug in your numbers and do the arithmetic to get the monthly payment. The total cost of the loan is the monthly payment times the number of payments.
John
My calculator said it, I believe it, that settles it
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