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### Mystery Test

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Rodrigo applied for a \[tex]$14,000 loan at an interest rate of 5.4% for 6 years. Use the monthly payment formula to complete the statement.

\[ M=\frac{P\left(\frac{r}{12}\right)\left(1+\frac{r}{12}\right)^{12t}}{\left(1+\frac{r}{12}\right)^{12t}-1} \]

where
- \( M \) = monthly payment
- \( P \) = principal
- \( r \) = interest rate
- \( t \) = number of years

Rodrigo's monthly payment for the loan is $[/tex]\square[tex]$, and the total finance charge for the loan is $[/tex]\square$.

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Sagot :

GinnyAnswer
Sure, I'll guide you through the result:

Rodrigo applied for a \[tex]$14,000 loan at an interest rate of 5.4% for 6 years. Based on these given conditions: 1. Monthly Payment: - Rodrigo's monthly payment for the loan is \$[/tex]228.08 (when rounded to two decimal places).

2. Total Finance Charge:
- The total finance charge for the loan, which is the total amount paid over the loan term minus the principal, is \[tex]$2421.46 (when rounded to two decimal places). So, the completed statements are: Rodrigo's monthly payment for the loan is \$[/tex]228.08, and the total finance charge for the loan is \$2421.46.
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