Wednesday
August 27, 2014

Homework Help: Algebra

Posted by Pamela on Friday, July 31, 2009 at 1:13am.

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


Suppose Alice buys a car and obtains a 5 year loan for $25,000 at an interest rate of 6%.


(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, itís 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?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Algebra - Suppose Alice buys a car and obtains a 5 year loan for $25,000 at an ...
Algebra - Suppose A is the amount borrowed, r is the interest rate (in decimal ...
Algebra - I am trying to work through this problem and am having trouble. Can ...
Algebra - I am trying to work through this problem and am having trouble. Can ...
buissness math - Determine the total in Dexter's account after the second month ...
Consumer math !!!! please check - Determine the total in Dexter's account after...
math - OMG I CAN NOT get this !!!! Purchase price of article = $495 Down payment...
mathematics - The monthly loan payment was calculated at 119 payments of $330.38...
Math - I need help with this I keep putting the numbers in wrong on the formula...
algebra - mr.thomas wants to buy a boat. he must make 548 monthly payments to ...

Search
Members