Question

Use the given formula to solve the following problem: When the amount financed is $15,480, the monthly payment is $621.33, and the monthly interest rate is 0.00583, how long do you have to pay?

A. 18 months
B. 23 months
C. 27 months
D. 32 months

Answer 1

log[P/(P-Ar)]
n=________________
log(1+r)

Answer 2

@petiteme

Answer 3

petiteme do u know how to do this???

Answer 4

I could solve this (I think)
In that formula, what does 'Ar' mean?

Answer 5

A IS amount and r is rate

Answer 6

I'm trying to use a formula I ise in my own online calculator:
time = log(1+(rte/(pmt/(amt)-rte))) / Math.log(1+rte))/12;

And what does amount rate mean?

Answer 7

amount is the price of the car ,house or idk but is what really cost and the rate is the interests the we have to pay like taxes

Answer 8

Well, I will have to leave for a few hours, but I'll come back to this.

Answer 9

okay thanks

Answer 10

Okay, I have the answer and I used my formula.
Principal = $15,480
monthly payment = $621.33
monthly interest rate = 0.00583
months = log(1+(rate/(pmt/(princ)-rate))) / log(1+rate)
months = log(1 + (.00583 / (621.33 / (15,480) - .00583))) / log ( 1.00583)
months = log(1.169933208) / log(1.00583)
months = 0.0681610684 / 0.0025245848
months = 26.9989221736

I'd guess 27 is the answer considering that does round neatly to 27 and that choice C = 27.

There it is. I have no idea how to use that other formula but at least you have an answer.