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. A. 510.97 B. 541.02 C. 618 D. 551.04 E. None. B. Use the function in this prob

ID: 1108233 • Letter: #

Question

.

A. 510.97

B. 541.02

C. 618

D. 551.04

E. None.

B.

Use the function in this problem to find the monthly payment on a $35,650 loan at 5.55% for 6 years.

A. $788.22

B. $816.52

C. $583.28

D. $794.24

E. Not listed

Suppose you borrow some money when you buy a new car. The monthly car payment is given by the function of three variables Pr M = f(P,r,t) = where P is 12t 121-1+ 12 the amount of money borrow, i is the interest rate written as a decimal, and t is time expressed in years. Suppose you borrowed $27,500 at 7.5% for 5 years. What is the monthly payment?

Explanation / Answer

1.

monthly payment

=(27500*7.5%)/(12*(1-(1+(7.5%/12))^(-12*5)))

=551.04

2.

monthly payment

=(35650*5.55%)/(12*(1-(1+(5.55%/12))^(-12*6)))

=583.28

the above are the answers