mr.thomas wants to buy a boat. he must make 548 monthly payments to pay back the amount he borrowed, plus interest. his monthly payment is $161.85. what other information is necessary to determine the amount of money mr.thomas borrowed from the bank.
To determine the amount of money Mr. Thomas borrowed from the bank, we need to have either the annual interest rate or the total repayment amount. With just the monthly payment and the number of payments, it is not possible to accurately determine the borrowed amount without additional information.
To calculate the borrowed amount, you will need one of the following:
1. Annual Interest Rate: With the annual interest rate, you can calculate the monthly interest rate by dividing it by 12 (since there are 12 months in a year). Then, you can use the formula for calculating the monthly payments of a loan to find the borrowed amount. The formula is:
Borrowed Amount = Monthly Payment / ((1 + Monthly Interest Rate)^(Number of Payments) - 1) * ((1 + Monthly Interest Rate)^(Number of Payments))
2. Total Repayment Amount: If you know the total repayment amount, you can use the formula for calculating the monthly payments of a loan to find the borrowed amount. Rearranging the formula, you get:
Borrowed Amount = (Monthly Payment * ((1 + Monthly Interest Rate)^(Number of Payments) - 1)) / ((1 + Monthly Interest Rate)^(Number of Payments))
In both cases, you will need the monthly interest rate, which can be derived from the annual interest rate. Without this information, it is not possible to determine the borrowed amount accurately.