# MATH

posted by .

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.

• MATH -

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.

• MATH -

Thanks a million!

## Similar Questions

1. ### Finance

Dave takes out a 30-year mortgage of 200000 dollars for his new house. Dave gets an interest rate of 16.8 percent compounded monthly. He agrees to make equal monthly payments, the first coming in one month. After making the 68th payment, …

1. Mike wants to invest money every month for 40 years. He would like to have \$1 000 000 at the end of the 40 years. For each investment option, how much does he need to invest each month?
3. ### Math

You have borrowed \$135,000 from the bank today. You are required to repay this money over the next six years by making monthly payments of \$2,215.10 at the end of each month. What is the quoted interest rate for the loan (with monthly …
4. ### Finance - Loans problem

A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At the same time the company …
5. ### Finance - Loans problem

Can someone please explain how this problem is laid out to solve.A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal …
6. ### Finance - Loans problem

Reiny the answer 307.33 you posted at the bottom is coming up incorrect. please if you can help i would be very grateful. A company borrows \$170000, which will be paid back to the lender in one payment at the end of 5 years. The company …