Troy juth wants to purchase new dive equipment for Underwater connection, his retail store in Colorado springs. He was offered a $62,000 At 6% for 72 months. What's is his monthly payment by formula?
I = PRT
I = 62,000 * 0.06 * 6
I = 22,320
(62,000 + 22,320) / 72 = $__________
Where do you get the T as 6?
You get the T by dividing 72 (total months) by 12 (months in a year) = 6 years
To calculate Troy's monthly payment, we can use the formula for calculating the monthly payment on a loan:
\(M = \frac{P \cdot r \cdot (1+r)^n}{(1+r)^n-1}\)
Where:
- M is the monthly payment
- P is the principal loan amount
- r is the monthly interest rate (annual interest rate divided by 12)
- n is the number of payments (number of months)
In this case:
- P = $62,000
- r = 6% per year = 0.06/12 = 0.005 (monthly interest rate)
- n = 72 months
Using these values, we can substitute them into the formula to find the monthly payment:
\(M = \frac{62,000 \cdot 0.005 \cdot (1+0.005)^{72}}{(1+0.005)^{72}-1}\)
Calculating this formula will give us the monthly payment.