Respuesta :
Answer:
Brady will have to make approximately 16 payments.
Step-by-step explanation:
Monthly Payment formula is: [tex]M= P[\frac{r}{1-(1+r)^-^n}][/tex]
where, [tex]M=[/tex] Monthly payment, [tex]P=[/tex] Loan amount, [tex]r=[/tex] Annual interest rate and [tex]n=[/tex] total number of periods.
Here, [tex]M= 201.50, P= 2800[/tex]
[tex]r= 18\% yearly = (\frac{0.18}{12}) monthly = 0.015[/tex]
Plugging these values into the above formula.....
[tex]201.50=2800[\frac{0.015}{1-(1+0.015)^-^n}]\\ \\ 201.50=\frac{42}{1-(1.015)^-^n}\\ \\ 1-(1.015)^-^n=\frac{42}{201.50}\\ \\ 1-(1.015)^-^n=0.208\\ \\ (1.015)^-^n =1-0.208\\ \\ (1.015)^-^n=0.792\\ \\ log(1.015)^-^n=log(0.792)\\ \\ -n*log(1.015)=log(0.792)\\ \\ -n=\frac{log(0.792)}{log(1.015)}=-15.66\\ \\ n=15.66 \approx 16[/tex]
So, he will have to make approximately 16 payments.
