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Use the equation below and choose the correct answers for c, the total of the payments, and the monthly

payment.

Use the equation below and choose the correct answers for c, the total of the payments-example-1

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Answer: Amount of Interest (c) = $192.72

Total of Payments = $817.72

Total Number of Payments = 24, Monthly Payment = $29.03

Step-by-step explanation: Let's break down the given information:

Price of the drill press: $675.00

Down payment: $50.00

Number of months (n): 24 months

Annual interest rate: 14% or 0.14 (as a decimal)

First, we need to calculate the principal amount (amount financed) after the down payment:

Principal Amount = Price - Down Payment = $675.00 - $50.00 = $625.00

Now, let's use the formula for calculating the monthly payment (PMT) in terms of the principal (P), interest rate (r), and number of periods (n):

PMT = P * (r * (1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal amount

r = Monthly interest rate

n = Number of months

Monthly interest rate (r) can be calculated from the annual interest rate (0.14) as:

r = Annual Rate / 12 = 0.14 / 12 = 0.01167

Now, substitute the values and calculate the monthly payment (PMT):

PMT = $625.00 * (0.01167 * (1 + 0.01167)^24) / ((1 + 0.01167)^24 - 1)

PMT ≈ $29.03 (rounded to two decimal places)

Amount of Interest (c):

Total Payment (c) = Monthly Payment * Number of Payments - Principal

c = $29.03 * 24 - $625.00 ≈ $192.72

Total of Payments (amount financed + c):

Total of Payments = Principal + Interest

Total of Payments = $625.00 + $192.72 ≈ $817.72

Total Number of Payments and Monthly Payment:

Total Number of Payments = 24

Monthly Payment = $29.03

So, the answers are:

Amount of Interest (c) = $192.72

Total of Payments = $817.72

Total Number of Payments = 24, Monthly Payment = $29.03

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