Solution Found!
In 110, use PMT = P a r n b c 1 - a1 + r n b -nt d . Round answers to the nearest
Chapter 8, Problem 1(choose chapter or problem)
In Exercises 1 - 10, use
\(P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]}\) .
Round answers to the nearest dollar.
Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly payments and the total interest for the loan.
Text Transcription:
PMT = P (r / n) / [1 - (1 + r / n)^{-nt}]
Questions & Answers
QUESTION:
In Exercises 1 - 10, use
\(P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]}\) .
Round answers to the nearest dollar.
Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly payments and the total interest for the loan.
Text Transcription:
PMT = P (r / n) / [1 - (1 + r / n)^{-nt}]
ANSWER:Step 1 of 6
An auto loan would finance the purchase of a vehicle over a certain length of time, allowing the car owner to avoid financial difficulty caused by a large payment due all at once. The car owner will also agree to make monthly payments that include both interest and principal repayment.