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: 9

Answer

$6429.83

Work Step by Step

Total Purchase amount = rate per area $\times$ total area 4100 $\times$ 275 = 1,127,500 Farmer paid 25% down, 1,127,500 - 25% = 845625 Therefore remaining amount = 845,625 So, Principal = P = 845625 Interest = I = 0.0675/12 = 0.005625 Number of payments = N =20x12 = 240 EMI = $\frac{P∗I∗(1+I)^{N}}{[(1+I)^N−1]}$ therefore,$\frac{845625∗0.005625∗(1+0.005625)^{240}}{[(1+0.005625)^{240}−1]}$ = 6429.82815 rounded up gives us $6429.83 as monthly payment
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