jayaa514mariee
Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Reset Janet’s loan back to $3500, 24% interest, but pretend she decided from the start that her pay-off goal was 4 years instead of 2. What is Janet’s new monthly payment?

Sagot :

Using simple interest, it is fond that Janet’s new monthly payment is of $142.92.

Simple Interest

Simple interest works like a simple linear function, in which the amount increases proportionally with the interest rate.

The amount of money after t years in simple interest is modeled by:

[tex]A(t) = A(0)(1 + rt)[/tex]

In which:

  • A(0) is the initial amount.
  • r is the interest rate, as a decimal.

In this problem:

  • The amount is of $3500, hence A(0) = 3500.
  • The rate is of r = 0.24.
  • She pays in 4 years, hence t = 4.

The total amount paid is of:

[tex]A(t) = A(0)(1 + rt)[/tex]

[tex]A(4) = 3500[1 + (0.24)(4)][/tex]

[tex]A(4) = 6860[/tex]

She pays in 4 x 12 = 48 months, hence the monthly payment is of:

$6860/48 = $142.92.

You can learn more about simple interest at https://brainly.com/question/25296782

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.