Question

40 POINTS URGENT PLEASE HELP
a.) $385
b.) $430
c.) $444
d.) $480

Answer 1

The amount of loan ($20000) after 48 months with 1.5% (0.015) interest rate is calculated by:

A = 20000 x (1 + 0.015/12)^48

= 21235.94$

Monthly payment of Grace is calculated by:

M = A/number of month

= 21235.94/48 = 442.4 = ~444$

Hope this helps!

:)

P.S: I did try the amortization formula, but something wrong with my calculator. I used other formula instead :)