If sandy can afford car payments of $270 per month for 4 years, what is the price of a car that she can afford now? Assume an interest rate of 9 percent.

This involves the amortization formula.

Question

If sandy can afford car payments of $270 per month for 4 years, what is the price of a car that she can afford now? Assume an interest rate of 9 percent. 

This involves the amortization formula.

anonymous · Answer

interest rate is yearly?

anonymous · Answer

It does not identify on the problem. Do you want to see a screenshot?

anonymous · Answer

$$P = A \frac{ 1 - (\frac{ 1 }{ (1+r) })^n }{ r }$$

anonymous · Answer

thats the amortization formula your A = periodic payment = 270

anonymous · Answer

r = periodic interest rate = 0.0075

anonymous · Answer

May I ask how I would approach this equation, this formula is not on my list.  I have ordinary annuity, future value with either compound and or simple interest. Unpaid balance, and simple interest.

anonymous · Answer

n= total number of payments = 48

anonymous · Answer

Wrong Equation. Don't use this answer!