Elementary Technical Mathematics

Published by Brooks Cole
ISBN 10: 1285199197
ISBN 13: 978-1-28519-919-1

Chapter 1 - Section 1.16 - Application Involving Percent: Business and Personal Finance - Exercises - Page 95: 8

Answer

$643.07

Work Step by Step

Principal = P = 75,000 Interest = I = 0.0625/12 = 0.0052083 Number of payments = N =15x12 = 180 EMI = $\frac{P*I*(1+I)^{N}}{[(1+I)^{N}-1]}$ therefore, $\frac{75000*0.0052083*(1+0.0052083)^{180}}{[(1+0.0052083)^{180}-1]}$ = 643.0655 rounded up gives us $643.07 as monthly payment
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