Answer
$\$ 80,783.21$
Work Step by Step
(see p. 870)
If a loan $A_{p}$ is to be repaid in
$n$ regular equal payments with
interest rate $i$ per time period,
then the size $R$ of each payment is given by
$R=\displaystyle \frac{iA_{p}}{1-(1+i)^{-n}}$
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Solve for $A_{p},$ multiply both sides with $\displaystyle \frac{1-(1+i)^{-n}}{i}$
$A_{p}=R\displaystyle \times\frac{1-(1+i)^{-n}}{i}$
$n=12(30)=360,\ \displaystyle \quad i=\frac{0.09}{12}=0.0075$.
$R =650$,
$A_{p}= 650\times \displaystyle \frac{1-(1.0075)^{-360}}{0.0075}=\$ 80,783.21$.
