need an explanation for how to solve this.
if you borrow P dollars at a monthly interest rate of r (in decimal) and wish to pay it off in t months, then your monthly payment can be calculated by the formula:
M(P,r,t)=((Pr(1+r)t))/(((1+r)^t-1))

a.) find the monthly payments if you are purchasing a $200,000 home at a yearly rate of 6% over 30 years.
hint: monthly=yearly/12 and n years is 12 n months
b.)if the interest rate was 3% instead of 6%, then how much money would you save over the entire length of the loan?

Question

need an explanation for how to solve this.
if you borrow P dollars at a monthly interest rate of r (in decimal) and wish to pay it off in t months, then your monthly payment can be calculated by the formula:
M(P,r,t)=((Pr(1+r)t))/(((1+r)^t-1))

a.) find the monthly payments if you are purchasing a $200,000 home at a yearly rate of 6% over 30 years.
hint: monthly=yearly/12 and n years is 12 n months
b.)if the interest rate was 3% instead of 6%, then how much money would you save over the entire length of the loan?

triciaal · Answer

|dw:1472259569062:dw|