Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447



Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

You are one of the branch managers of the Insignia Bank. Today two loan applications were submitted to your office. Calculate the requested information for each loan.

Amount Financed Interest Rate Term of Loan Number of $1,000s Financed Table Factor Monthly Payment Total Interest
$98,500 5.25% 20 years ______ ______ _________ __________

To determine

To calculate: The number of $1,000s financed, table factor, monthly payment and total interest when amount financed is $98,500, interest rate is 5.25 % and term of loan is 20 years.


Given Information:

Amount Financed is $ 98500

Interest Rate is 5.25 %

Term of loan is 20 years

Formula used:

The formula for the number of $ 1000 is

Number of $1000s financed = Amount Financed1000

Use the table 14.1 to calculate the table factor. Locate the table factor on the intersection of the number of years column and the interest rate row.

The formula for Monthly payment is

Monthly Payment = Number of 1000s financed × Table Factor


Number of payments = Term of loan × 12 

Total interest is given by,

Total Interest = (Monthly payment × Number of payments) Amount Financed


Consider the given values,

Amount Financed = $98,500Interest Rate = 5.25%Term of Loan = 20years

To calculate number of $ 1000 financed, apply the formula

Number of $1000s financed = Amount Financed1000= 985001000= 98

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Solve each equation and check: x+5=5

Elementary Technical Mathematics

In Exercises 51-58, use the Vertical Line Test to determine whether the graph represents y as a function of x. ...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

A sample with a mean of M = 8 has X = 56. How many scores are in the sample?

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Solve the equations in Exercises 126. (x2+1)5(x+3)4+(x2+1)6(x+3)3=0

Finite Mathematics and Applied Calculus (MindTap Course List)

Polar coordinates of the point with rectangular coordinates (5, 5) are: (25, 0)

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th