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Sagot :
Using it's formula, considering a loan of $10,000, the regular monthly payments required to pay off the loan will be of $221.3.
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, we have that the parameters are given as follows:
P = 10,000, r = 0.0299, n = 4 x 12 = 48.
Then:
r/12 = 0.0299/12 = 0.00249167.
Hence, the monthly payment will be 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]
[tex]A = 10000\frac{0.00249167(1+0.00249167)^{48}}{(1+0.00249167)^{48} - 1}[/tex]
A = 221.3.
More can be learned about the monthly payment formula at https://brainly.com/question/22846480
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