Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $45,000 loan at 3% for 60 months. What is his monthly payment by formula? (Round your answer to the nearest cent.)

Question

Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in Colorado Springs. He was offered a $45,000 loan at 3% for 60 months. What is his monthly payment by formula? (Round your answer to the nearest cent.)

Monthly payment $

Answer 1

Never mind, I got it:

I = PRT
I = 45,000 * 0.03 * 5
I = 6,750

(62,000 + 6,750) / 60 = $862.5

Answer 2

so, do you have the formula?

If so, just plug in your numbers. What is your formula, and what do you get?

Answer 3

To calculate the monthly payment using a formula, we can use the loan payment formula:

Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))

Let's calculate the monthly payment step-by-step using the given information:

Loan Amount = $45,000
Monthly Interest Rate = 3% / 100 / 12 (convert annual interest rate to monthly rate and decimal)
Number of Months = 60

Plugging in the values into the formula:

Monthly Payment = (45000 * (0.03/12)) / (1 - (1 + (0.03/12))^(-60))

Now we can simplify the equation:

Monthly Payment = (45000 * 0.0025) / (1 - (1.0025)^(-60))

Approximating the result to the nearest cent:

Monthly Payment = $843.86

Therefore, Troy Juth's monthly payment for the loan is $843.86.

Answer 4

To calculate the monthly payment for a loan, we can use the formula for loan payments known as the Loan Payment Formula. The formula is as follows:

Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)

Where:
P = Principal amount (loan amount)
r = Monthly interest rate (annual interest rate divided by number of months in a year)
n = Total number of payments (loan term in months)

In this case:
Principal amount (P) = $45,000
Annual interest rate = 3%
Number of payments (n) = 60 (5 years * 12 months)

Now let's calculate the monthly payment using the formula:

Step 1: Convert the annual interest rate to a monthly interest rate.
Monthly interest rate (r) = 3% / 12 = 0.03 / 12 = 0.0025

Step 2: Plug the values into the formula and calculate the monthly payment.
Monthly Payment = $45,000 * (0.0025 * (1 + 0.0025)^60) / ((1 + 0.0025)^60 - 1)

Calculating this expression will give us the monthly payment amount for Troy Juth's loan. Let's use a calculator or spreadsheet to do the math.

Monthly Payment ≈ $829.47

Therefore, Troy Juth's monthly payment for the $45,000 loan at 3% interest for 60 months is approximately $829.47.