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Sagot :
Using it's formula, it is found that the value of the monthly payment for the loan to buy the drum set is of $50.32.
What is the monthly payment formula?
It is given by:
[tex]A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}[/tex]
In which:
- P is the initial amount.
- r is the interest rate.
- n is the number of payments.
In this problem, the parameters are given as follows:
P = 1800, r = 0.1525, n = 4 x 12 = 48.
Hence:
r/12 = 0.1525/12 = 0.01270833.
Hence, the monthly payments will be of:
[tex]A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}[/tex]
[tex]A = 1800\frac{0.01270833(1 + 0.01270833)^{48}}{(1 + 0.01270833)^{48} - 1}[/tex]
A = 50.32.
More can be learned about the monthly payment formula at https://brainly.com/question/22846480
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