Laschay1
Answered

Giving brainliest if right!!

Katelyn plans to apply for a $10,000 loan at an interest rate of 5.6% for 5 years. Use the monthly payment formula to complete the statement.

P(r/12) (1+r/12)^12t
M=(1+r/12)^12t-1

M= monthly payment
Pe principal
ra interest rate
t = number of years

Rounded to the nearest cent, Katelyn's monthly payment
the loan is $

Answer :

It’s 191.47 because I just used a loan calculator on it and it was right so it should be correct

Katelyn's monthly payment for the loan is $2,032.52.

How to solve for monthly payment?

The formula given is explicit, we can solve for monthly payment using the below formula;

P=L(1-r/r-r^n+1)

r=1/(1+i)

i=5.6%/12=0.47%

5.6% is an annual interest rate, it would be appropriate to restate in monthly terms,

r=1/(1+0.47%)=

r = 0.995

n = 5 years*12 months = 60

L is the loan amount of $100,000

P = 100000*(1-0.995)/(0.995-0.995^60+1)

P = 100000*(1-0.995)/(0.995-0.74)

P = 100000*0.005/0.246

P = $ 2,032.52  

Therefore, Katelyn's monthly payment for the loan is $2,032.52.

Learn more about this concept;

https://brainly.com/question/16654192

#SPJ2

Other Questions