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enrique needs our help again. He has 310 dollars he can afford to put towards a new car each month. he wants to be done in 5 years.
a. if he were to be approved for loan at 8% apr compounded monthly, what would the size loan granted to him be? what is he were approved for 3% compounded monthly?
b. one of your values should be higher then the other. Explain why it makes sense that your higher loan value paired with the apr that produced it makes sense?

Respuesta :

The monthly payment of $310 compounded monthly at 8% and 3% will have a principal of $15,288.71 and $17,252.23 respectively

Monthly Payment

The monthly payment is the amount paid per month to pay off the loan in the time period of the loan. When a loan is taken out it isn't only the principal amount, or the original amount loaned out, that needs to be repaid, but also the interest that accumulates.

In order to solve this question, we can use the formula of monthly payment we can use a simple formula for that

[tex]A = p \frac{r(1+r)^n}{(1+r)^n-1}[/tex]

  • A = monthly payment
  • r = rate
  • n = number of times compounded
  • Principal on the loan

In the first scenario, we can find the monthly payment at 8%

Substituting the values into the equation and solve

The principal at 8% is $152888.71 and the principal at 3% is at $17252.23

Learn more on monthly payment here;

https://brainly.com/question/25599836

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