Question 1069014: E-Loan, an online lending service, recently offered 36-month auto loans at 5.4 %
compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $524
You can borrow ???
.
(Round to two decimal places.)
You will pay a total of in interest?? (Round to two decimal places.)
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! A=P(1-(1+i)^-n)/(i); i=r/n
Amount= 524(1-1+(.054/12))^-36 all divided by .054/12
=524*
Do the calculations starting with the parentheses, raising it to the -36th power, subtracting the result from 1, then dividing by (.054/12). Multiply that by 524. The last two steps may be done in reverse order, multiplying by 524 then dividing by 0.0045, (.054/12)
=$17,329.30, rounding at the end.
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