b. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment, the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after three years. The unpaid balance after three years is $14447 (Round to the nearest dollar as needed.)

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 5P
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Answer B question
The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid
balance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n is
the number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below.
- nt
P=PMT
1- 1+
Multiply both sides of the loan payment formula by
#
LC
b. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment,
the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after three
years.
The unpaid balance after three years is $14447
(Round to the nearest dollar as needed.)
a
$
[¹-(¹+)
(9
W
81°F
A
*
Transcribed Image Text:The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n is the number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below. - nt P=PMT 1- 1+ Multiply both sides of the loan payment formula by # LC b. The price of a car is $25,000. You have saved 25% of the price as a down payment. After the down payment, the balance is financed with a 5-year loan with monthly payments at 8%. Determine the unpaid balance after three years. The unpaid balance after three years is $14447 (Round to the nearest dollar as needed.) a $ [¹-(¹+) (9 W 81°F A *
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