Question

x

Answer 1

you have a monthly payment formula in your materials .. or on the google

Answer 2

2 of the options seems a bit out of the norm tho

Answer 3

yeah, its a toss between the first 2 :)

Answer 4

i use my own formula ... but either way, i need you to find it. that is the study part of this site.

Answer 5

i do get the right result :) so once you find yours, ill show you one that i feel is simpler

Answer 6

thats not correct, but its an attempt

you uses a compounding rate formula, not a monthly payment

the form i use is

\[P=Bk^n\frac{k-1}{k^n-1}\]
B is our loan amount, n is the number of compounding periods (12*15), and k is our compounding rate (1+r/12)

but since your first pick is wrong, that only leaves the other one

http://www.wolframalpha.com/input/?i=345500k%5E%2812*15%29%28k-1%29%2F%28k%5E%2812*15%29-1%29%2C+k%3D1%2B.04875%2F12

Answer 7

:( oh i thought i was right... :( well thank you now i'll know for next time :) thank you!

Answer 8

is that the same formula for finding the principal and total cost?

Answer 9

it can be modified yes the total cost of a loan is the sum of all payments.

principle is just the original loan amount

Answer 10

okay, so i can use that one to find the total cost? cool!

Answer 11

total interest is part of the setup:

total payments = principle + interest

Answer 12

i use it to find lots of stuff. its a very useful form

Answer 13

I use it for balloon questions, for ARM questions, for Payments, for annuities, ... balances ... deferments ... lots of stuff