Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $3000 loan for 30 months at 8.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)
Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $3000 loan for 30 months at 8.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)
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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Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.
Assume that you take out a $3000 loan for 30 months at 8.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)
Expert Solution
Step 1
According to the given problem,
Principal amount is
Tenure is months
Annual percentage rate (APR) is
Since the payment is in monthly mode, rate of interest per month is
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