Earl Miller plans to buy a boat for $19,500 with an interest charge of $2500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, by how much can he afford the boat per month?
M.P. = (P+I)/N \=(19500+2500) / 36= $611.11 = Monthly payments.
Margin = 650 - 611.11 = $38.89.
thanks
To determine how much Earl can afford to pay for the boat per month, we need to consider the total cost of the boat, the interest charge, and the number of monthly payments.
The total cost of the boat including the interest charge is $19,500 + $2,500 = $22,000.
Earl has to pay this amount in 36 equal monthly payments, so we divide the total cost by the number of payments to find the monthly payment amount.
$22,000 / 36 = $611.11
Therefore, Earl can afford to pay approximately $611.11 per month for the boat.