Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.
Sagot :
The difference between the monthly payment of R and S is equal to $48.53 by following the compound interest formula. Thus, Loan R's monthly loan amount is greater than Loan S.
What is a Compound interest loan?
Combined interest (or compound interest) is the loan interest or deposit calculated based on both the original interest and accrued interest from earlier periods.
[tex]\rm\,For\,R\\\\P = \$\,17,550\\r\,= 5.32\%\\Time\,= n= 7\,years\\Amount\,paid= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\=[ 17,550 (1+\dfrac{5.32}{100\times12})^{7\times12} ]\\= [ 17,550 (\dfrac{12.0532}{12})^{84} ]\\\\= [ 17,550 (1.00443^{84} ]\\\\= \$ 25,440.48\\\\Total\,monthly\,payment = \rm\,\dfrac{25,440.48}{84}\\\\= \$\, $302.86\\\\[/tex]
[tex]\rm\,For\,S =\\\\P=\,\$ 15,925\\r\,= 6.07\%\\T=n= 9\,years\\\\Amount\,paid\,= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\\\\= [15,925(1+\dfrac{0.0607}{12})^{9\times12} ]\\\\\\= [15,925(1+\dfrac{0.0607}{12})^{108} ]\\\\=[15,925(1.7247.84)} ]\\\\\= \$27,467.19\\\\Total\,monthly\,payment =\dfrac{\rm\,\$\,27,469.19}{108}\\\\= \$ 254.326\\\\[/tex]
The difference between the monthly payment of R and S is equal to $48.53.
Hence, Loan R's monthly payment is greater than the loan's monthly payment by $48.53
To learn more about Compound interest, refer to the link:
https://brainly.com/question/14331235
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.
