Question

Find the monthly payment needed to pay off a loan of $3900 amortized at 3% compounded monthly for 6 years.

Answer 1

Pert

Answer 2

3900 e^(.03)(6)

Answer 3

The answer doesn't make sense though..

Answer 4

3900 * (e^(.03 * 6)) = 4,669.14772

Divide that by 72 months to get the payments

64.85

Answer 5

It says it's wrong :/

Answer 6

64.84? let me look up the definition for amoritized...

Answer 7

Yeah, I have this online homework called "Webwork" and it says that's incorrect.. i've already tried

Answer 8

compunded monthly.....I did continuously becasue I cant read...im going illiterate

Answer 9

It's okay! lol

Answer 10

P(1+(.03/12))^(12*6) should be the total amount and then divide tha tby 72 to get the monthlies...

Answer 11

3 900 * ((1 + (.03 / 12))^(12 * 6)) = 4,668.09902

divide by 72: 64.83 trythat :)

Answer 12

Nope :/

Answer 13

....... new tax laws maybe? :)

Answer 14

haha Maybe.. it's getting tedious though

Answer 15

P(1+r/n)^(n*t) is the formula. that gives you the total amount of the loan over t years. right?

Answer 16

\[3900(1+\frac{.03}{12})^{12*6}\]

Answer 17

Tried that already

Answer 18

if it aint that....I dont know what id be..... amortized just means.

59.26 is what an amortization calculator online gives me////

Answer 19

Thank you though (:

Answer 20

wait could you please copy and paste that url.. the "amortization calculator online"

Answer 21

Because I have one more just like this to do that webwork kept saying was wrong

Answer 22

http://www.amortization-calc.com/

Answer 23

what in the world haha

Answer 24

gotta put in the right numbers :)

Answer 25

ughhh lol thank you. this is difficult

Answer 26

:)

Answer 27

this is more of a finance question
a finance calculator like a BA II would help you a lot
the math behind it deals with present value equations
the value of your payment changes based on how much goes toward principal and how much towards interest
since with every payment the balance decreases the interest amount will also decrease over time
anyway the equations is this
i = .03/12 = .0025
v = 1/(1+i) = .997506
3900 = P(1+v+v^2 +...v^71)
sum of (1+v+...) = (1-v^72)/(1-v) = 65.98
P=3900/65.98 = 59.11

this is an approximate answer and prob more info than you need
i put this into my BA II and got 59.25