SOLUTION: Can you please help me with this question? Determine the present value of a 30-year loan with an annual interest rate of 6.5% with loan payments of $1856.82. Interest is charged 1

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Can you please help me with this question? Determine the present value of a 30-year loan with an annual interest rate of 6.5% with loan payments of $1856.82. Interest is charged 1      Log On


   

Question 125457: Can you please help me with this question?
Determine the present value of a 30-year loan with an annual interest rate of 6.5% with loan payments of $1856.82. Interest is charged 12 times per year.
My answer options are:
a.$423,781.90
b.$668,455.20
c.$185,229.37
d.$293,769.01
Please try and reply back to me as soon as possible, thank you!!!!!
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
c=%28r%2F%281-%281%2Br%29%5E%28-N%29%29%29%2AP
where c is the monthly payment, P is the principal, r is the monthly interest rate, N is the total number of months.
c=1856.82
r=6.5/100/12=.005417
N=30*12=360
P=c%2F%28%28r%2F%281-%281%2Br%29%5E%28-N%29%29%29%29
P=1856.82%2F%28%28.005417%2F%281-%281%2B.005417%29%5E%28-360%29%29%29%29
P=1856.82%2F%28.00632068031%29
P=+293769.01
The answer is D.