Question 1131199
you can afford a monthly payment of $100, how large of a loan can you get at 3.15% interest over 30 months(2.5 years)?
:
We can use the formula:
{{{(P((1+(r/n))^(nt))(r/n))/((1+(r/n))^(nt)-1)}}} = 100
where
P = the amt borrowed
r = interest in decimal form .0315
n = no. of payments per year 12
t = no. of years 2.5
:
{{{(P((1+(.0315/12))^(12*2.5))(.0315/12))/((1+(.0315/12))^(12*2.5)-1)}}} = 100
:
{{{(P((1.002625)^30)(.002625))/((1.002625)^30-1)}}} = 100
:
{{{(P(1.0818)(.002625))/((1.0818)-1))}}} = 100
:
{{{(P(.00284))/.0818)}}}= 100
:
.0347P = 100
P = {{{100/.0347}}}
P = $2882 is the price of a car you can buy for $100 a month