Question

I need help on this last one please @jim_thompson5910

Answer 1

ok where are you stuck?

Answer 2

the formula looks nasty, but you can use a calculator to make it more bearable

Answer 3

I know the formula but solving it is difficult

Answer 4

what is r in this case?

Answer 5

15% 0.15 decimal form

Answer 6

yes r = 0.15

Answer 7

how about P? what is the amount borrowed?

Answer 8

$5,000

Answer 9

and finally, what is t?

Answer 10

3 years

Answer 11

yes t = 3

Answer 12

if r = 0.15, then what is r/12 equal to?

Answer 13

0.0125
would that be 1.25??

Answer 14

\[\Large \frac{r}{12} = \frac{0.15}{12} = 0.0125\]

Answer 15

So that means
\[\Large 1+\frac{r}{12}=1+ 0.0125=1.0125\]

Answer 16

agreed?

Answer 17

yes

Answer 18

so we'll have...

\[\LARGE M = \left(\frac{\frac{r}{12}}{1-\left(1+\frac{r}{12}\right)^{-12t}}\right)*P\]

\[\LARGE M = \left(\frac{0.0125}{1-\left(1.0125\right)^{-12*3}}\right)*5000\]

agreed so far?

Answer 19

yes sir I agree so far

Answer 20

What is `1.0125^(-12*3)` equal to?
Use this calculator if you don't have one
http://web2.0calc.com/

Answer 21

I get this 0.6394091578134724

Answer 22

so
\[\LARGE M = \left(\frac{0.0125}{1-\left(1.0125\right)^{-12*3}}\right)*5000\]
turns into
\[\LARGE M = \left(\frac{0.0125}{1-0.6394091578134724}\right)*5000\]

Answer 23

what is `1-0.6394091578134724` equal to?

Answer 24

I don't know

Answer 25

use the calculator I gave you

Answer 26

0.3605908421865276

Answer 27

good

Answer 28

so
\[\LARGE M = \left(\frac{0.0125}{1-0.6394091578134724}\right)*5000\]
turns into
\[\LARGE M = \left(\frac{0.0125}{0.3605908421865276}\right)*5000\]

Answer 29

Now use that calculator to divide the fraction
what is `0.0125/0.3605908421865276` equal to?

Answer 30

I got it this is so long

Answer 31

It's a lot of steps, but it's probably better to take it step by step instead of doing it all at once.

Answer 32

Anyways, tell me what you get

Answer 33

0.0346653285041941234

Answer 34

good

Answer 35

\[\LARGE M = \left(\frac{0.0125}{0.3605908421865276}\right)*5000\]
turns into
\[\LARGE M = 0.0346653285041941234*5000\]

Answer 36

Then there's just one more step: multiply the values to get M = ???

Answer 37

tell me what you get

Answer 38

it gives me 173.32 and other numbers @jim_thompson5910

Answer 39

same here
\[\LARGE M \approx 173.326642521 \approx 173.33\]

Answer 40

The monthly payment is therefore $173.33

Answer 41

so is that the answer

Answer 42

for #16, yes

Answer 43

how do I do number 17

Answer 44

Let's make Q = total interest charge
To get the total interest, you would compute the following
\[\Large Q = 12*M*t - P\]
basically you calculate all the money you pay back (12*M*t) and subtract off the amount you borrowed (P) to get the total interest Q

Answer 45

12*173.33*3-p??

Answer 46

So plug
M = 173.33
P = 5000
t = 3
into
\[\Large Q = 12*M*t - P\]
and tell me what you get.

Answer 47

`12*173.33*3-p??`
keep in mind that P = 5000 is the amount you borrow

Answer 48

so it should be 12*173.33*3-5000

Answer 49

1239.88

Answer 50

good

Answer 51

that's number 17 answer

Answer 52

yes