a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $. (Round to the nearest dollar as needed.) 1+ n A -nt b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.
a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $. (Round to the nearest dollar as needed.) 1+ n A -nt b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount, r
is the annual interest rate, n is the number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below.
1+
P=PMAT (1-(1-4) -
n
r
A
n
a. Use the loan payment formula to derive the unpaid balance formula.
Explain how to derive the unpaid balance formula. Choose the correct answer below.
Multiply both sides of the loan payment formula by
1-
The unpaid balance after three years is $
(Round to the nearest dollar as needed.)
r
1+-
n
b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine
the unpaid balance after three years.
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