I have a review sheet and im not sure if i answered these correct and need a little help
1. I can afford $1100 per month for my house payement. At an interest rate of 7.5% percent and a 30-year loan, how much can I afford to borrow?
2. I want to buy a new car. What will the monthly payments be for a loan of 19,000 at an APR od 3.5% for six years?
How much interest will you pay altogether for this loan?
thank you
1. I can afford $1100 per month for my house payement. At an interest rate of 7.5% percent and a 30-year loan, how much can I afford to borrow?
2. I want to buy a new car. What will the monthly payments be for a loan of 19,000 at an APR od 3.5% for six years?
How much interest will you pay altogether for this loan?
thank you
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:)
1. I can afford $1100 per month for my house payment. At an interest rate of 7.5% percent and a 30-year loan, how much can I afford to borrow?
Simply substitute the values into the annuity formula ...
1100[1 - (1+0.075/12)^(-12*30)] / (0.075/12) = $157,319.39
2. I want to buy a new car. What will the monthly payments be for a loan of 19,000 at an APR od 3.5% for six years?
P[1 - (1+0.035/12)^(-12*6)] / (0.035/12) = $19,000, now solve for P ...
P = $292.95
How much interest will you pay altogether for this loan?
Interest = $292.95 x 12 x 6 - 19,000 = $2,092.40
hope that helped
1. I can afford $1100 per month for my house payment. At an interest rate of 7.5% percent and a 30-year loan, how much can I afford to borrow?
Simply substitute the values into the annuity formula ...
1100[1 - (1+0.075/12)^(-12*30)] / (0.075/12) = $157,319.39
2. I want to buy a new car. What will the monthly payments be for a loan of 19,000 at an APR od 3.5% for six years?
P[1 - (1+0.035/12)^(-12*6)] / (0.035/12) = $19,000, now solve for P ...
P = $292.95
How much interest will you pay altogether for this loan?
Interest = $292.95 x 12 x 6 - 19,000 = $2,092.40
hope that helped