Question

Find c and I. Choose the right answers. Hint: c = total of payments - amount financed Amount Financed (m) = $3,500 Number of Payments per year (y) = 12 Number of Payments (n) = 36 36 payments of $104.50 each. To the nearest penny, total interest(c) = $ To the nearest tenth, I =

Answer 1

Total of payments
104.5×36=3762

C=total of payments-amount financed
C=3,762−3,500=262

I=(2yc)÷(m× (n+1)
I=(2×12×262)÷(3,500×(36+1))=0.0486
I=0.0486×100
I=4.86%

Answer 2

Amount financed states that the actual amount of credit made available to a borrower in a loan.

Given:

Amount Financed (m) = $3,500, Number of payment per year(y) = 12

and number of payments(n) = 36

36 payments of $104.50 each.

First calculate the total number of payments;

36 payments of $ 104.50 each

Total payment =
`\$ 104.50 * 36= \$3,762`

Solve for c;

Total interest(c) = Total payments - Amount financed(m)

substitute the values of m and total payments above;

c = $3,762 -$3500 = $ 262

Therefore, the value of c = $ 262

To find I(Interest rate)

use formula I =
`(2yc)/(m(n+1)) * 100`

Substitute the value of y,c , m, and n in above to solve for I;

`I = (2* 12 * 262)/(3500 * (36+1))* 100`

Simplify:

I = 4.8 %(nearest tenth)

therefore, the interest rate (I) is ; 4.8 %