Algebra
posted by Shelly .
I am trying to work through this problem and am having trouble. Can someone tell me what the "w" stands for in the equation and walk me through the steps? Below is what I have so far.
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
monthly payment = 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?
Still trying to figure out what w is. I think it is $483.32 the monthly payment??
(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.
Loan amount P = 25,000
Interest Rate = r = 0.005 per month 6% interest annually
Number of Payments: 60
Payment amount, A = $483.32
483.32 (60) = $28,999.20 Total paid all together ????
28,999.20 – 25,000 = $3,999.20 interest paid.
Can someone show me how to solve this using algebra? Thanks!

Algebra 
MathMate
Your answers are correct, but you have probably misinterpreted the expression for the monthly payment. For detailed solution and the answer to a post by yourself or your classmate at:
http://www.jiskha.com/display.cgi?id=1249017180
Respond to this Question
Similar Questions

science and medicine
I am having some trouble working this out . Could you possibily show me how to work it out.Thank You! A bicyclist rode into the country for 5 h. In returning, his speed was 5 mi/h faster and the trip took 4 hours. What was his speed … 
Algebra
I am trying to work through this problem and am having trouble. Can someone tell me what the "w" stands for in the equation and walk me through the steps? 
pre algebra
How do I figure out problems like 52 = p +(41)? 
Math : Algebra
I have a whole page of questions I'm trying to complete that are similar to this, but no idea how to do them. If someone could give me a walk through of this question I'd be very appreciative. I'm just suppose to solve the equation. … 
Algebra
I have never had algebra and cannot figure out how to work through the problem below [(x + 1)²  (2x + 1)]1/2 + 2x  6 = 0 Can you show me the steps for solving the problem? 
Algebra
I have to work out this equation for my college paper and I am having trouble understanding graphs, etc. The question is C=200+50 and C=300+25. Can anyone walk me through the steps on how to graph this? 
Calc
I have the differential equation dP/dt = 0.5(800P) and I need to get the population equation P(t). Can someone walk me through the steps? 
Algebra 1
I'm having trouble solving x=2(x1)+6 I understand but I get confused on some of the problem and this is one of them. It's probably very simple to get the answer but can someone please just walk me through on trying to solve it? 
math
1. find the equation of the tangent line at x=1 to y=f(x) where f(x)=(3x^2)/(5x^2+7x) Can someone help walk me through the steps of this problem. Do I start with finding the derivative of the function using the quotient rule? 
math
1. find the equation of the tangent line at x=1 to y=f(x) where f(x)=(3x^2)/(5x^2+7x) Can someone help walk me through the steps of this problem. Do I start with finding the derivative of the function using the quotient rule?