Answer:
With a monthly payment of $700, a yearly interest rate of 0.89%, and a loan duration of 10 years, you can get a loan amount of approximately $73,279.79.
Explanation:
Given:
Monthly payment: $700
Yearly interest rate: 0.89% (expressed as a decimal, 0.0089)
Loan duration: 10 years
First, we need to calculate the monthly interest rate by dividing the yearly interest rate by 12 (number of months in a year):
Monthly interest rate = Yearly interest rate / 12
Monthly interest rate = 0.0089 / 12 ≈ 0.00074 (approximately)
Next, we can use the monthly payment, monthly interest rate, and loan duration to calculate the loan amount using a loan amortization formula.
Loan amount = Monthly payment / [(1 - (1 + Monthly interest rate)^(-Number of payments)) / Monthly interest rate]
Number of payments = Loan duration in years * 12 (since there are 12 months in a year)
Number of payments = 10 * 12 = 120
Substituting the values into the formula:
Loan amount = 700 / [(1 - (1 + 0.00074)^(-120)) / 0.00074]
Loan amount ≈ $73,279.79
Therefore, with a monthly payment of $700, a yearly interest rate of 0.89%, and a loan duration of 10 years, you can get a loan amount of approximately $73,279.79.