Algebra

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To help open a jewelry store, Chang borrowed money from his credit union. He took out a personal, amortized loan for $45,000, at an interest rate of 6.45%, with monthly payments for a term of 8 years.

For each part, do not round any intermediate computations and round your final answers to the nearest cent.

Find Changs monthly payment?

If Chang pays the monthly payment each month for the full term, find his total amount to repay the loan?

If Chang pays the monthly payment each month for the full term, find the total amount of interest he will pay?

  • Algebra -

    i = .0645/12 = .....
    n = 8(12) = 96
    paym = p

    p( 1 - (1+i)^-96 )/i = 45000
    - you should know that formula as the PV , present value, formula

    Once you have the payment p , use your Amount formula to find the amount of 96 payments of p

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