Homework Help: MATHHH

Posted by Michelle on Monday, January 17, 2011 at 12:41pm.

Mike wants to buy a snowmobile. His parents decide to lend him $9 000 at 10%/a, compounded monthly, if he agrees to repay the amount by making equal monthly (at the end of the month) payments for five years.

d. Write the series that represents the present value of the annuity.

e. Find the monthly payment using the formula.
f. Find the monthly payment using the T1 - 83 plus calculator. In your answer, include the values you entered for each parameter in TVM solver.

MATHHH - Reiny, Monday, January 17, 2011 at 1:32pm
d)
i = .10/12 = .008333..
PV = 9000
= x(1.008333)^-1 + x(.008333)^-2 + ... + x(1.008333)^-60

e)
9000 = x[1 - 1.008333^-60]/.083333
9000 = x(47.0654126)
x = 191.22

f) that's all yours, I don't have one of those.
MATHHH - Chelsea, Monday, January 17, 2011 at 5:13pm
Thanks a million!

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