To help open up a restaurant Ravi borrowed money from his credit union he took out a personal a mortise loan for $48,000 at an interest rate of 6.5% with monthly payments for a term of seven years for each part do not round any intermediate computations and round your final answers to the nearest cent find webbie's monthly payment
To find Ravi's monthly payment, we can use the following formula:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = monthly payment
P = loan amount
r = monthly interest rate
n = number of months
First, we need to calculate the values of r and n.
r = annual interest rate / 12
r = 6.5% / 100 / 12
r = 0.00541667
n = number of years * 12
n = 7 * 12
n = 84
Now, let's substitute these values into the formula:
M = 48000 * (0.00541667 * (1 + 0.00541667)^84) / ((1 + 0.00541667)^84 - 1)
M = 48000 * (0.00541667 * (1.00541667)^84) / ((1.00541667)^84 - 1)
By calculating this using a calculator, we find that Ravi's monthly payment, rounded to the nearest cent, is $715.69.
If Ravi pays the monthly payment each month for the full term find his total amount to repay the loan
To find the total amount Ravi will repay over the term of the loan, we can multiply the monthly payment by the number of months of the loan.
Total amount = Monthly payment * Number of months
Using the values we calculated previously:
Total amount = $715.69 * 84
By calculating this, we find that Ravi's total amount to repay the loan, rounded to the nearest cent, is $60,201.96.
If Robbie pays the monthly payment each month for the full term find the total amount of interest he will pay
To find the total amount of interest Ravi will pay over the term of the loan, we can subtract the principal loan amount from the total amount to be repaid.
Total interest = Total amount - Principal loan amount
Total interest = $60,201.96 - $48,000
By calculating this, we find that Ravi will pay a total amount of interest, rounded to the nearest cent, is $12,201.96.
To calculate Ravi's monthly payment for the mortgage loan, we can use the formula for a fixed-rate mortgage:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where:
M = Monthly Payment
P = Principal loan amount
i = Monthly interest rate
n = Total number of months
Given:
Principal loan amount (P) = $48,000
Interest rate (i) = 6.5% or 0.065 (monthly interest rate)
Loan term (n) = 7 years or 84 months
Plugging in the values and calculating:
M = 48,000 * [0.065(1 + 0.065)^84 ] / [ (1 + 0.065)^84 - 1 ]
M ≈ $726.02
Therefore, Ravi's monthly payment for the mortgage loan is approximately $726.02.
To find Ravi's monthly payment for his mortgage loan, we can use the formula for calculating an amortized loan payment:
M = P * (r * (1+r)^n) / ((1+r)^n - 1)
Where:
M = Monthly payment
P = Principal amount (loan amount)
r = Monthly interest rate
n = Total number of monthly payments
Let's break down the given information:
Principal amount (loan amount): P = $48,000
Interest rate: 6.5% per annum
Term: 7 years
First, we need to convert the annual interest rate to a monthly interest rate. Since there are 12 months in a year, the monthly interest rate will be 6.5% / 12.
r = 6.5% / 12 = 0.065 / 12 = 0.0054167 (approx.)
Next, we calculate the total number of monthly payments. Since the term is 7 years and there are 12 months in a year, the total number of monthly payments will be:
n = 7 years * 12 months/year = 84 months
Now, we can substitute the values into the formula to find the monthly payment:
M = $48,000 * (0.0054167 * (1+0.0054167)^84) / ((1+0.0054167)^84 - 1)
Calculating this formula will give us the monthly payment. Rounding the final answer to the nearest cent will give us the exact monthly payment amount that Ravi needs to pay.