Hi, I asked this question an got an answer for it but I'm unable to understand what's happening in the written portion of the answer. Would you be able to breakdown each step in this answer/question and explain the math happening in the photo that was submitted. The question is: You have a $15,000 debt from your three-year college program. The interest rate charged is 6.8%. You have three options to pay back the loan. Which option will you take? Show your work, including any screen shots if you used an amortization table you may have used. In a brief paragraph, justify your decision, including a description of all factors that would affect that decision. (100-200 words) $450/month for three years $350/month for four years $285/month for five years
Hi, I asked this question an got an answer for it but I'm unable to understand what's happening in the written portion of the answer. Would you be able to breakdown each step in this answer/question and explain the math happening in the photo that was submitted.
The question is: You have a $15,000 debt from your three-year college program. The interest rate charged is 6.8%. You have three options to pay back the loan. Which option will you take? Show your work, including any screen shots if you used an amortization table you may have used.
In a brief paragraph, justify your decision, including a description of all factors that would affect that decision. (100-200 words)
$450/month for three years
$350/month for four years
$285/month for five years
![9:13
App Store
←
Step2
b)
Amount a
$15000
Time
3 year's.
intered rate= 6-84⋅ = 0·068 = 0·0056667
Amount & i (1+1)
Payment
Step3
c)
a
=
4450/months - 3year's
=$461.79
Total Amount after ayear's
$450 X36 = $ 16200
J $350/month → 4 year's
15000
$350 XH8 =
1,e
• (0.0856667) (1+0.0056667 ) ³6 ]
(1+0.005667) ³61
285 x 60
16 $285/ month → 5 year's
$171100
Q
$16800
option is better than other's.
450/month 3 year's
фны-79 к36= Ф 16ванонн
Therefore the Frist option ic correct.
?
√x
17
Do](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb825be-c08f-4270-bb51-856b4c911020%2F0e27f64d-9773-4ec3-a997-09f541e827a4%2F74uzwfv_processed.png&w=3840&q=75)
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Hi, thanks for the soloution. Does this mean that the interest rate is already included in the monthly cost? Also in the picture I provided with the writing and the original answer to the question it shows the person answering the question mulitiplying and dividing the intertest rate and getting the answer $461.79. But when adding the interest to the montly payments it doesn't fit in with the 3 options already provided.
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