1. Estimate the monthly payments of a loan for a 2016 Ford Mustang GT. The amount borrowed is $33,000 at a 4.5% yearly interest rate compounded monthly for 72 months.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section: Chapter Questions
Problem 8CC
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Section 10 – Topic 8
Calculating Loan Payments
Use the compound interest formula F = P(1+ i)", where F is the future value,
P is the principal amount of the loan, i is the monthly interest rate and n is the
number of months.
Use the summation formula S, = a to determine the monthly payments.
1. Estimate the monthly payments of a loan for a 2016 Ford Mustang GT. The
amount borrowed is $33,000 at a 4.5% yearly interest rate compounded
monthly for 72 months.
Transcribed Image Text:Section 10 – Topic 8 Calculating Loan Payments Use the compound interest formula F = P(1+ i)", where F is the future value, P is the principal amount of the loan, i is the monthly interest rate and n is the number of months. Use the summation formula S, = a to determine the monthly payments. 1. Estimate the monthly payments of a loan for a 2016 Ford Mustang GT. The amount borrowed is $33,000 at a 4.5% yearly interest rate compounded monthly for 72 months.
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