Question

Hello what is the answer to both parts of this question

Answer 1

The formula for the monthly payments is:

`M=P\cdot((r)/(12)\cdot(1+(r)/(12))^n)/((1+(r)/(12))^n-1)\text{.}`

Where:

• M = monthly payments,

,

• P = principal amount = $19300,

,

• r = interest rate in decimals = 6.1% = 0.061,

• n = # of years = 3.

Replacing the data of the problem in the formula above, we get:

`M=19300\cdot((0.061)/(12)\cdot(1+(0.061)/(12))^3)/((1+(0.061)/(12))^3-1)\text{.}`

Answer

`M=19300\cdot((0.061)/(12)\cdot(1+(0.061)/(12))^3)/((1+(0.061)/(12))^3-1)\text{.}`