Explanation Given: If you borrow P dollars at a monthly rate of r and wish to pay off the loan in t months, then the monthly payment is given by the function, M ( P , r , t ) = Pr ( 1 + r ) t ( 1 + r ) t − 1 in dollars. Approach: The value of any function M ( a , b , c ) if function M ( P , r , t ) is given, can be calculated by substituting a for P , b for r and c for t in that function. Calculation: Substitute 5500 for P , 0.01 for r and 24 for t to find the value of the function M ( 5500 , 0.01 , 24 ) . M ( P , r , t ) = ( 5500 ) ( 0 To determine (b) To express: The monthly payment for a loan of $ 8000 at a monthly rate of 0.6 % paid over 36 months in functional notation, and the value of monthly payment as well.

6th Edition

ISBN: 9781337801287

Author: Crauder

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Chapter 1.CR, Problem 11CR

To determine

(a)

To calculate:

The value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

To determine

(b)

To express:

The monthly payment for a loan of $8000 at a monthly rate of 0.6% paid over 36 months in functional notation, and the value of monthly payment as well.

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Chapter 1.CR, Problem 10CR

Chapter 1.CR, Problem 12CR

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When you borrow money to buy a house or a car, you pay off the loan in monthly payments, but the interest is always accruing on the outstanding balance. This makes the determination of your monthly payment on a loan more complicated than you might expect. If you borrow P dollars at a monthly interest rate of r (as a decimal) and wish to pay off the note in t months, then your monthly payment M = M(P,r,t) in dollars can be calculated using the following function. M = Pr (1+r)t (1 + r)² - 1 The above function can be rearranged to show the amount of money P = P(M, r, t) as shown below, in dollars, that you can afford to borrow at a monthly interest rate of r (as a decimal) if you are able to make t monthly payments of M dollars. 1 - - - - - (1 - 1 + ²) 1 (1 r) P=Mx Suppose you can afford to pay $300 per month for 3 years. (a) How much money can you afford to borrow for the purchase of a car if the prevailing monthly interest rate is 0.75%? (That is 9% APR.) Express the answer in…

An amount of P dollars is borrowed for the given length of time with the amount F due at the end of the given length of time. Find the annual simple interest rate r. (Round your answer to two decimal places.) P = $2400, F = 3744.00, 7 years %3D r = %

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(a) To calculate: The value of the function M ( 9500 , 0.01 , 24 ) and the explanation of answer in practical terms.

Solution Summary: The author explains the value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

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(a)

To calculate:

The value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

(b)

To express:

The monthly payment for a loan of $8000 at a monthly rate of 0.6% paid over 36 months in functional notation, and the value of monthly payment as well.

Want to see the full answer?

Chapter 1 Solutions

(a) To calculate: The value of the function M ( 9500 , 0.01 , 24 ) and the explanation of answer in practical terms.

Solution Summary: The author explains the value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

Concept explainers

Videos

(a) To calculate: The value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

(b) To express: The monthly payment for a loan of $8000 at a monthly rate of 0.6% paid over 36 months in functional notation, and the value of monthly payment as well.

Want to see the full answer?

Chapter 1 Solutions

(a)

To calculate:

The value of the function M(9500,0.01,24) and the explanation of answer in practical terms.

(b)

To express:

The monthly payment for a loan of $8000 at a monthly rate of 0.6% paid over 36 months in functional notation, and the value of monthly payment as well.