# Math gr 12

posted by Anon

Help! My friend let me borrow their notes and I don't know how they got these answers because they didn't show their work. Could someone please help me? *The answers are correct btw.

David is flying from Detroit to Las Vegas. The airfare is \$476. He can afford monthly payments of \$40. The loan is charged 6.7% completely daily. (Show your work)

A) Determine the number of payments that must be made
B) What is the total amount paid back.
C) How much was paid in interest charges?

A) 13
B) \$493.97
C) 17.97

1. Reiny

"The loan is charged 6.7% completely daily"
This makes no sense, did you mean compounded daily ?

If so, then this question is quite difficult. The Present Value formula of an annuity assumes that the time period of the payment and the time period of the compounding are the same.

2. Anon

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