Ask Question
22 April, 02:42

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 the nearest cent.)

+3
Answers (2)
  1. 22 April, 05:32
    0
    The monthly payment is $808.59 to the nearest cent.

    Explanation:

    The payment can be calculated using the formula:

    P = iA / [1 - (1+i) ^-N]

    Where:

    P = The monthly payment

    i = The interest rate per period i. e. per month

    A = The loan amount

    N = Total number of payments for life of the loan

    P = iA / [1 - (1+i) ^-N]

    i = 3%/12 = 0.0025

    A = $45,000

    N = 60 months

    P = 0.0025*45000 / [1 - 1.0025^-60]

    P = 112.5 / [1 - 0.8608691058]

    P = 112.5 / 0.1391308942

    P = 808.59108 → $808.59 is the monthly payment
  2. 22 April, 05:56
    0
    PMT = r (PV) / 1 - (1+r) ^{-n}

    r=rate =.03/12

    PV = Previous Value = 45,000

    n=number of months = 60

    Payment is $808.59
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Troy juth wants to purchase new dive equipment for underwater connection, his retail store in colorado springs. he was offered a $45,000 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers