Question

PLEASE PLEASE HELP...... Explain what the following variables represent and how changing each one affects the monthly payment amount: P, i, and t

Answer 1

@whpalmer4

Answer 2

P = principal — the amount of money
i = interest rate
t = time

If P increases, the monthly payment will go up. If P decreases, the monthly payment goes down. Similarly, if the interest rate goes up, the payment goes up, and if the interest rate goes down, the payment goes down (assuming only one variable is being changed at a time).

Time works the other way — increasing the amount of time makes the monthly payment go down, because less principal will be paid each month. You will pay more interest over the lifetime of the loan, but the monthly payments will be smaller.

Answer 3

thank you so much, so helpful!