(a) Explanation Given: Principal of loan P = $ 15 , 000 , rate of interest is 2.99% compounded monthly for 60 months. Explanation: In the first offer, the Union offers 2.99% annual interest rate for 60 months. Use the formula for the amortization payments, R = P i 1 − ( 1 + i ) − n Here, P is the principal of loan, R is the periodic payment, i is the interest rate per period and n is the number of periods. As the loan is for 60 months, n = 60 and, the interest rate per period will be i = 1 12 × 2.99 % = 1 12 × 0.0299 = 0.0299 12 = 299 120 , 000 Substitute P = $ 15 , 000 , i = 299 120 , 000 and n = 60 , the value of each monthly payment will be R = P i 1 − ( 1 + i ) − n = 15 , 000 × 299 120 (b) To determine The monthly payments necessary to amortize a home loan of $ 15,000 for 84 months at 3.49% interest rate and the total amount paid. (c) To determine To write: Which deal is the best.

Finite Mathematics, Books a la Carte Plus MyLab Math Access Card Package (11th Edition)

11th Edition

ISBN: 9780133886818

Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey

Publisher: PEARSON

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Chapter 5, Problem 77RE

(a)

To determine

The monthly payments necessary to amortize a home loan of $ 15,000 for 60 months at 2.99% interest rate and the total amount paid.

(b)

To determine

The monthly payments necessary to amortize a home loan of $ 15,000 for 84 months at 3.49% interest rate and the total amount paid.

(c)

To determine

To write: Which deal is the best.

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Chapter 5, Problem 76RE

Chapter 5, Problem 78RE

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Chapter 5 Solutions

Finite Mathematics, Books a la Carte Plus MyLab Math Access Card Package (11th Edition)

Ch. 5.1 - 1. What factors determine the amount of interest...Ch. 5.1 - In your own words, describe the maturity value of...Ch. 5.1 - 3. What is meant by the present value of...Ch. 5.1 - We calculated the loan in Example 2(b) assuming...Ch. 5.1 - Find the simple interest. $25,000 at 3% for 9...Ch. 5.1 - Find the simple interest. 6. $4289 at 4.5% for...Ch. 5.1 - Find the simple interest. 7. $1974 at 6.3% for...Ch. 5.1 - Find the simple interest. 8. $6125 at 1.25% for...Ch. 5.1 - Find the simple interest. Assume a 360-day year....Ch. 5.1 - Find the simple interest. Assume a 360-day...

Ch. 5.1 - Find the maturity value and the amount of simple...Ch. 5.1 - Find the maturity value and the amount of simple...Ch. 5.1 - Find the maturity value and the amount of simple...Ch. 5.1 - Find the maturity value and the amount of...Ch. 5.1 - 15. Explain the difference between simple...Ch. 5.1 - Prob. 16E Ch. 5.1 - 17. What is the difference between t and n? 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The monthly payments necessary to amortize a home loan of $ 15,000 for 60 months at 2.99% interest rate and the total amount paid.

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The monthly payments necessary to amortize a home loan of $ 15,000 for 60 months at 2.99% interest rate and the total amount paid.

The monthly payments necessary to amortize a home loan of $ 15,000 for 84 months at 3.49% interest rate and the total amount paid.

To write: Which deal is the best.

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Chapter 5 Solutions