2 years ago

3. Who set up their equation correctly for the following question?

Mathematics

1 answer:

melisa1 [442]2 years ago

5 0

Heyy 3747484884 hwibdhdjens

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Dean took out a 10-year loan for $40,000 at an APR of 4% compounded monthly. What will his balance be after he has made exactly

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Answer:

The balance be after he has made exactly half of his monthly payments is $56881.4.

Step-by-step explanation:

Given : Dean took out a 10-year loan for $40,000 at an APR of 4% compounded monthly.

To find : What will his balance be after he has made exactly half of his monthly payments?

Solution :

Formula of monthly payment ,

$M=\frac{\text{Amount}}{\text{Discount factor}}$

Discount factor $D=\frac{1-(1+i)^{-n}}{i}$

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$i=\frac{4}{100}=0.04$

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Now, put all the values we get,

$D=\frac{1-(1+i)^{-n}}{i}$

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The balance is $96881.4-$40000=$56881.4

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