20: Answer B Questions 100The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaidbalance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n isthe number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below.P=PMT1-A-ntMultiply both sides of the loan payment formula byab. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment,the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after threeyears.is $The unpaid balance after three years(Round to the nearest dollar as needed.)-|CCW84°F ^ 100The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaidbalance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n isthe number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below.-ntP=PMT1--E- | -aa. 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.......91-1+[¹-(₁-3) ]884°F<4x

Part (b): Consider the provided question, Given, price of car =$25,000 Down payment is 25% of the…

b. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment, the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after three years. The unpaid balance after three years is $ (Round to the nearest dollar as needed.)

b. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment, the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after three years. The unpaid balance after three years is $ (Round to the nearest dollar as needed.)

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter8: Sequences And Series

Section8.4: Mathematics Of Finance

Problem 23E

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