Question

interest rate of 2.99% compounded monthly for a 4 year loan, find the regular monthly payments required to repay the loan. loan is 24,295

Answer 1

monthly payment = (loan * interest * (1 + interest)^n)/(1 + interest)^n -1

MP = (24295 * 0.0299 * (1 + 0.0299)^48) / (1 + 0.0299)^48 - 1

`(\left(24295*0.0299*1+0.0299^(48)\right))/(\left(1+0.0299\right)^(48)-1)`

MP = 959.77 is the answer to C

959.77 * 48 = 46068.96 which is the answer to D