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anonymous

  • 5 years ago

Find the monthly payment needed to pay off a loan of $3900 amortized at 3% compounded monthly for 6 years.

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  1. amistre64
    • 5 years ago
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    Pert

  2. amistre64
    • 5 years ago
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    3900 e^(.03)(6)

  3. anonymous
    • 5 years ago
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    The answer doesn't make sense though..

  4. amistre64
    • 5 years ago
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    3900 * (e^(.03 * 6)) = 4,669.14772 Divide that by 72 months to get the payments 64.85

  5. anonymous
    • 5 years ago
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    It says it's wrong :/

  6. amistre64
    • 5 years ago
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    64.84? let me look up the definition for amoritized...

  7. anonymous
    • 5 years ago
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    Yeah, I have this online homework called "Webwork" and it says that's incorrect.. i've already tried

  8. amistre64
    • 5 years ago
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    compunded monthly.....I did continuously becasue I cant read...im going illiterate

  9. anonymous
    • 5 years ago
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    It's okay! lol

  10. amistre64
    • 5 years ago
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    P(1+(.03/12))^(12*6) should be the total amount and then divide tha tby 72 to get the monthlies...

  11. amistre64
    • 5 years ago
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    3 900 * ((1 + (.03 / 12))^(12 * 6)) = 4,668.09902 divide by 72: 64.83 trythat :)

  12. anonymous
    • 5 years ago
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    Nope :/

  13. amistre64
    • 5 years ago
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    ....... new tax laws maybe? :)

  14. anonymous
    • 5 years ago
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    haha Maybe.. it's getting tedious though

  15. amistre64
    • 5 years ago
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    P(1+r/n)^(n*t) is the formula. that gives you the total amount of the loan over t years. right?

  16. amistre64
    • 5 years ago
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    \[3900(1+\frac{.03}{12})^{12*6}\]

  17. anonymous
    • 5 years ago
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    Tried that already

  18. amistre64
    • 5 years ago
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    if it aint that....I dont know what id be..... amortized just means. 59.26 is what an amortization calculator online gives me////

  19. anonymous
    • 5 years ago
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    Thank you though (:

  20. anonymous
    • 5 years ago
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    wait could you please copy and paste that url.. the "amortization calculator online"

  21. anonymous
    • 5 years ago
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    Because I have one more just like this to do that webwork kept saying was wrong

  22. amistre64
    • 5 years ago
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    http://www.amortization-calc.com/

  23. anonymous
    • 5 years ago
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    what in the world haha

  24. amistre64
    • 5 years ago
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    gotta put in the right numbers :)

  25. anonymous
    • 5 years ago
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    ughhh lol thank you. this is difficult

  26. anonymous
    • 5 years ago
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    :)

  27. dumbcow
    • 5 years ago
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    this is more of a finance question a finance calculator like a BA II would help you a lot the math behind it deals with present value equations the value of your payment changes based on how much goes toward principal and how much towards interest since with every payment the balance decreases the interest amount will also decrease over time anyway the equations is this i = .03/12 = .0025 v = 1/(1+i) = .997506 3900 = P(1+v+v^2 +...v^71) sum of (1+v+...) = (1-v^72)/(1-v) = 65.98 P=3900/65.98 = 59.11 this is an approximate answer and prob more info than you need i put this into my BA II and got 59.25

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