Question

The top thing is question my answer is in the box am I correct and can you show me how to do it right if not

Answer 1

Formula

`M=(pm(1+m)^(na))/((1+m)^(na)-1)`

Given parameters

`\begin{gathered} p=3,500 \\ m=(8)/(12*100)=(0.08)/(12) \\ n=12\text{ } \\ a=2 \end{gathered}`

Substitute the given parameters into the formula

`M=(3500((0.08)/(12))(1+(0.08)/(12))^(24))/((1+(0.08)/(12))^(24)-1)`
`\begin{gathered} M=(3500((0.08)/(12))(1+(0.08)/(12))^(24))/((1+(0.08)/(12))^(24)-1) \\ \\ \text{Remove the parent}heses\text{ (a)=a} \\ (3500\cdot(0.08)/(12)\left(1+(0.08)/(12)\right)^(24))/(\left(1+(0.08)/(12)\right)^(24)-1) \\ \\ \text{Now} \\ \frac{3500\cdot(0.08)/(12)\mleft((0.08)/(12)+1\mright)^(24)}{1.0066^(24)^{}-1} \\ \text{Multiply the numerator} \\ (27.367)/(1.00666^(24)-1) \\ \text{simplify} \\ =(27.36738)/(0.17288)=158.296 \\ \end{gathered}`

The final answer

`\text{ \$158.30}`