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PLEASE PlEASE HELP

Melinda wants to borrow $38,762 for a new car. She takes out a loan 6,36%. Her monthly
budget will only allow her to have a payment of $375. What should the length of her
loan be?

PLEASE PlEASE HELP Melinda wants to borrow $38,762 for a new car. She takes out a-example-1
User Onur Topal
by
8.2k points

1 Answer

6 votes

Answer:

$375 = n

Explanation:

To determine the length of Melinda's loan, we can use the information provided.

First, let's calculate the total amount she will have to pay back, including the interest.

The formula to calculate the total amount paid back is:

Total amount = Principal + Interest

Given:

Principle = $38,762

Interest rate = 6.36% or 0.0636

Using this information, we can calculate the total amount paid back:

Total amount = $38,762 + ($38,762 x 0.0636)

Next, we need to determine the number of monthly payments Melinda will make. Let's call it n.

Using the monthly payment amount of $375, we can set up the equation:

Total amount = Monthly payment x Number of payments

$38,762 + ($38,762 x 0.0636) = $375 x n

Now we can solve for n, the number of payments:

$38,762 + ($38,762 x 0.0636) = $375n

To isolate n, we subtract $38,762 from both sides of the equation:

($38,762 x 0.0636) = $375n - $38,762

Now divide both sides by $375:

($38,762 x 0.0636) / $375 = n

Calculating this expression will give us the number of payments Melinda needs to make to pay off the loan.

Remember to use a calculator or a tool to calculate this expression accurately.

User Bhushan Kawadkar
by
8.4k points