Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,700 at 2.5% add-on rate for 5 years. (Round your answers to the nearest cent.)
$ interest
$ per month
Pt = Po*r*t / (1 - (1+r)^-t),
r = (2.5% / 12) / 100% = 0.002083 = monthly % rate expressed as a decimal.
t = 12mo/yr * 5yrs = 60 months.
Pt=42700*0.002083*60 / (1-(1.002083)-60
=5337.4991 / 0.117388323=$45,468.74
Int. = 45,468.74 - 42700 = $2768.74
Monthly=Pt / t=45468.74 / 60 = $757.81
find the amount of interest and monthly payment for loan. Purcase a living room set for 3,900 at 12% add-on interest for 2 years. round your monthly payment to the nearest cent.
To find the amount of interest and the monthly payment for the loan, we can use the formula for add-on interest:
Interest = Loan Amount * Interest Rate
Monthly Payment = (Loan Amount + Interest) / Number of Months
Given:
Loan Amount = $42,700
Interest Rate = 2.5% (expressed as a decimal)
Number of Years = 5
Converting the interest rate to a decimal:
2.5% = 2.5/100 = 0.025
Calculating the interest:
Interest = $42,700 * 0.025
Interest = $1,067.50
Calculating the number of months:
Number of Months = Number of Years * 12
Number of Months = 5 * 12
Number of Months = 60
Calculating the monthly payment:
Monthly Payment = ($42,700 + $1,067.50) / 60
Monthly Payment = $43,767.50 / 60
Monthly Payment ≈ $729.46 (rounded to the nearest cent)
Therefore, the amount of interest is approximately $1,067.50, and the monthly payment is approximately $729.46.
To find the amount of interest and the monthly payment for the loan, we need to use the formula for add-on interest.
The formula for add-on interest is:
Interest = Principal * Interest Rate * Time
First, let's calculate the interest:
Principal = $42,700
Interest Rate = 2.5% = 0.025
Time = 5 years
Interest = $42,700 * 0.025 * 5 = $5,337.50
So, the amount of interest on the loan is $5,337.50.
Next, let's calculate the monthly payment:
To calculate the monthly payment, we need to divide the total amount borrowed (principal) by the number of months in the loan term.
Principal = $42,700
Time = 5 years = 60 months
Monthly Payment = $42,700 / 60 = $711.67
So, the monthly payment for the loan is $711.67.
To summarize:
- The amount of interest on the loan is $5,337.50.
- The monthly payment for the loan is $711.67.