SOLUTION: Troy juth wants to purchase new dive equipment for underwater connection. His retail store in colorado springs. He was offered a $45,000 loan at 3% for 60 months. What is his month

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Question 1147648: Troy juth wants to purchase new dive equipment for underwater connection. His retail store in colorado springs. He was offered a $45,000 loan at 3% for 60 months. What is his monthly payment by formula? ( round your answer to mearest cent)
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
If the 3% is annual interest, convert months to years
+60%2F12+=+5+ yrs
+I+=+P%2Ar%2At+
+I+=+45000%2A.03%2A5+
+I+=+6750+
+P+%2B+I+=+45000+%2B+6750+
+P+%2B+I+=+51750+
The monthly payment is:
+51750%2F60+=+862.5+
$862.50 /mo.

Answer by MathTherapy(10557) About Me  (Show Source):
You can put this solution on YOUR website!

Troy juth wants to purchase new dive equipment for underwater connection. His retail store in colorado springs. He was offered a $45,000 loan at 3% for 60 months. What is his monthly payment by formula? ( round your answer to mearest cent)
As far as I know, loans that're extended are usually subjected to COMPOUND INTEREST, not simple interest.

Correct monthly payment: highlight_green%28%22%24808.59%22%29