Question

a total of $44,000 is borrowed and repaid with 72 monthly payments, with the first payment occurring one month after the receipt of the $44,000.

Answer 1

To calculate the monthly payment on a loan, divide the annual interest rate by the number of periods in a year, multiply the number of years by the number of periods in a year, and use the formula: Monthly Payment = (Loan Amount x Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Periods)).

Step-by-step explanation:

The subject of this question is Mathematics. The question involves a calculation related to loans and monthly payments. To answer the question, you need to use the formula for calculating monthly payments on a loan. Here's how you can calculate the monthly payment:

1. First, determine the interest rate per period. Divide the annual interest rate by the number of periods in a year. In this case, the loan has a 6% annual interest rate convertible monthly, so the monthly interest rate would be 6% divided by 12, which is 0.5% or 0.005 in decimal form.
2. Next, determine the number of periods. Multiply the number of years by the number of periods in a year. In this case, the loan has a 30-year term, so the number of periods would be 30 times 12, which is 360.
3. Finally, use the following formula to calculate the monthly payment: Monthly Payment = (Loan Amount x Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Periods)). In this case, the loan amount is $1,000,000, the monthly interest rate is 0.005, and the number of periods is 360. Plugging these values into the formula, you can calculate the monthly payment.