Question 1131816: Alice borrows $12,000 to buy a car. She pays 6.2% interest compounded monthly and the loan is for 3 years. Find the monthly payments. (Round your answer to two decimal places.)
$ =
Found 3 solutions by josmiceli, MathTherapy, greenestamps:
Answer by josmiceli(19441)   (Show Source):
Answer by MathTherapy(10556)  (Show Source):
You can put this solution on YOUR website!
Alice borrows $12,000 to buy a car. She pays 6.2% interest compounded monthly and the loan is for 3 years. Find the monthly payments. (Round your answer to two decimal places.)
$ =
Correct answer: 
Answer by greenestamps(13203)  (Show Source):
You can put this solution on YOUR website!
Tutor @josmiceli provided a solution of a problem completely different than the one you asked about, so her response is of no use to you.
Tutor @MathTherapy provided the right answer to your problem, without showing how to get it. That response is of use to you only if your purpose in submitting the question was to get the answer to a homework problem.
If you want to know a bit about HOW to solve a problem like this, let me help.
A formula for finding the payment amount on a loan is this:
P is the amount of the payment
A is the amount of the loan
i is the periodic interest rate (annual interest rate, divided by the number of periods per year)
n is the number of periods the loan is for
For your problem, we want to find P for an amount A of $12000.
The annual interest is 6.2% = 0.062.
Payments are monthly and the interest on the loan is compounded monthly; so the periodic interest rate i is 0.062/12.
The loan is for 3 years; so the number of monthly payments n is 3*12 = 36.
Plug in the numbers and evaluate using your calculator.
I strongly suggest not trying to enter the entire expression all at once. Missing parentheses, or parentheses in the wrong places, can give nonsensical answers. I prefer doing the calculations one operation at a time:
(1) 1+.062/12
(2) that, raised to the power -36
(3) that, subtracted from 1
(4) that, divided by (.062/12) (*** a place where the parentheses are critical)
(5) that, times 12000
|
|
|
