An individual borrowed $79,000 at an APR of 3%, which will be paid off with monthly payments of $455 for 19 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ the annual interest rate is %, the number of payments per year is the loan term is years, and the payment amount is $

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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### Loan Analysis Exercise

---

#### Consider the following loan. Complete parts (a)-(c) below:

An individual borrowed $79,000 at an APR of 3%, which will be paid off with monthly payments of $455 for 19 years.

---

### Steps to Solve:
(a) **Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.**

---

1. **Amount Borrowed:**
    - The amount borrowed is **$79,000**.

2. **Annual Interest Rate:**
    - The annual interest rate is **3%**.

3. **Number of Payments Per Year:**
    - The number of payments per year is **12**.

4. **Loan Term:**
   - The loan term is **19 years**.

5. **Payment Amount:**
    - The payment amount is **$455**.

---

**Breakdown of Information Entry (Fill in the Blanks):**
- The amount borrowed is **$79,000**.
- The annual interest rate is **3**%.
- The number of payments per year is **12**.
- The loan term is **19** years.
- The payment amount is **$455**.

---

By completing these steps, you can effectively identify all critical components of the loan information provided.
Transcribed Image Text:### Loan Analysis Exercise --- #### Consider the following loan. Complete parts (a)-(c) below: An individual borrowed $79,000 at an APR of 3%, which will be paid off with monthly payments of $455 for 19 years. --- ### Steps to Solve: (a) **Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.** --- 1. **Amount Borrowed:** - The amount borrowed is **$79,000**. 2. **Annual Interest Rate:** - The annual interest rate is **3%**. 3. **Number of Payments Per Year:** - The number of payments per year is **12**. 4. **Loan Term:** - The loan term is **19 years**. 5. **Payment Amount:** - The payment amount is **$455**. --- **Breakdown of Information Entry (Fill in the Blanks):** - The amount borrowed is **$79,000**. - The annual interest rate is **3**%. - The number of payments per year is **12**. - The loan term is **19** years. - The payment amount is **$455**. --- By completing these steps, you can effectively identify all critical components of the loan information provided.
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