SOLUTION: can you please help me resolve this question? Tiffany bought $3,000 of new furniture on credit. Because her credit score isn't very good, the store is charging her a fairly high

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Question 1131202: can you please help me resolve this question?
Tiffany bought $3,000 of new furniture on credit. Because her credit score isn't very good, the store is charging her a fairly high interest rate of 17% to finance this purchase. If she agreed to pay off the furniture over 5 years, how much will she have to pay each month?
Round your answer to the nearest cent.
$
Found 2 solutions by jim_thompson5910, Boreal:
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!

We'll use this formula
P+=+%28r%2APV%29%2F%281-%281%2Br%29%5E%28-n%29%29
Consult this page for more info
P = payment
PV = present value = loan amount
r = rate per period (in decimal form)
n = number of periods

In this case,
P = unknown (what we want to find out)
PV = 3000 is the loan amount
r = 0.17/12 = 0.01416666666667 is the decimal form of the interest rate per month
n = 5*12 = 60 months is the number of payment periods

Plug all of this into the formula and evaluate

P+=+%28r%2APV%29%2F%281-%281%2Br%29%5E%28-n%29%29

P+=+%280.01416666666667%2A3000%29%2F%281-%281%2B0.01416666666667%29%5E%28-60%29%29

P+=+%280.01416666666667%2A3000%29%2F%281-%281.01416666666667%29%5E%28-60%29%29

P+=+%280.01416666666667%2A3000%29%2F%281-0.429971895090039%29

P+=+%280.01416666666667%2A3000%29%2F%280.570028104909961%29

P+=+%2842.50000000001%29%2F%280.570028104909961%29

P+=+74.5577273013988

P+=+74.56

The monthly payment is $74.56

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=(r/n)*PV/(1-(1+(r/n)^(-nk)); r/n is .17/12 and nk=60, the number of payments made
round at the end
.0141667 is (r/n)
0.014166667*3000/(1-(1.0416667)^(-60)
=$74.56