Homework Help: Algebra

Posted by Shelly on Wednesday, July 29, 2009 at 10:39pm.

Suppose A is the amount borrowed, r is the interest rate (in decimal form), and m is the total number of monthly payments.

Let w = (r)/(12)

Then the formula to determine the monthly payment amount for a loan is given by

(Aw)/1-(1)/ (1+w)^m

(a) What is the numerical value of w?

(b) What is the monthly payment? (Show values substituted in the formula, and calculate the numerical amount.) Note: Since the loan is an amount in dollars and cents, it’s important to maintain a high degree of precision in intermediate calculations, and round to the nearest cent at the end.

(c) If Alice makes all 60 payments, how much will have been paid altogether?

Algebra - drwls, Thursday, July 30, 2009 at 1:17am
In order to provide numnerical answers, the initial loan principal A and the interest rate r must be given. You have not provided them.

They already tell you how to calculate w once r is known.

Your monthly payment formula does not look like you copied it correctly

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