You can afford monthly deposits of $260 into an account that pays 4.5% compounded monthly. How long will it be until you have $9,100 to buy a boat?
E-Loan, an online lending service, recently offered 60-month auto loans at 3.6% compounded monthly to applicants. If you have good credit and can afford monthly payments of $373, how much can you borrow from E-Loan? What is the total interest you will pay for this loan?
E-Loan, an online lending service, recently offered 60-month auto loans at 3.6% compounded monthly to applicants. If you have good credit and can afford monthly payments of $373, how much can you borrow from E-Loan? What is the total interest you will pay for this loan?
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FV = PMT[(1 + r/n)^nt - 1] / (r/n)
9100 = 260[(1 + .045/12)^(12 * t) - 1] / (.045/12)
35 * .00375 = 1.00375^(12t) - 1
35 * .00375 + 1 = 1.00375^(12t)
1.13125 = 1.00375^(12t)
ln 1.13125 / ln 1.00375^12 = t
2.7456511736221565723160819871144 = t
2.75 years
PMT = PV(r/n) / [1 - (1 + r/n)^(-nt)]
373 = PV(.036/12) / [1 - (1 + .036/12)^(-12*5)]
373 = .003PV / [1 - 1.003^-60]
373[1 - 1.003^-60] / .003 = PV
20453.415877049788049584435596124 = PV
$20,453.42 = PV
373 * 60 - 20453.42 = $1,926.58 in interest
9100 = 260[(1 + .045/12)^(12 * t) - 1] / (.045/12)
35 * .00375 = 1.00375^(12t) - 1
35 * .00375 + 1 = 1.00375^(12t)
1.13125 = 1.00375^(12t)
ln 1.13125 / ln 1.00375^12 = t
2.7456511736221565723160819871144 = t
2.75 years
PMT = PV(r/n) / [1 - (1 + r/n)^(-nt)]
373 = PV(.036/12) / [1 - (1 + .036/12)^(-12*5)]
373 = .003PV / [1 - 1.003^-60]
373[1 - 1.003^-60] / .003 = PV
20453.415877049788049584435596124 = PV
$20,453.42 = PV
373 * 60 - 20453.42 = $1,926.58 in interest