Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help on question 6 and 7 5. Thomas is taking out a $42,000 home-Improvement loan that he will make monthly payments on for eight

need help on question 6 and 7
image text in transcribed
5. Thomas is taking out a $42,000 home-Improvement loan that he will make monthly payments on for eight years. The interest rate is 5.19% A) Find his monthly payment (3) Incorrect Solution: 1 Explanation of Errot(o): Correct Work and Solution PMT= A (-(140)) Here as marins PMT=42000% are C0001291/4140012314560 -42000 0.0515 being made $ 53472 (1-C140.0sis) Iwdi be 0.0515/12- 0.001297 $6537.78 n=8x12-96 b) Find the total amount of money he would end up paying during the life of the loan. (2) Incorrect Solution: Explanation of Erro(): Correct Work and Solution 6537.78.6 Here the total amount= number of ab x 534.722 61,3323 $39226.68 years is 8 but you have mittplied with 16 ALSO PMT IS 534.72 c) Find the amount of interest he would pay on the loan. (2) Incorrect Solutions Explanation of Error(s) Correct Work and Solutions Iuerto used here is The formula interest amount total amount paid I=42000 (0.0515)(2) that of simple interest 251333 23-42.000- & 9,333.23 I: $17304

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What makes Zipcar an attractive employer for which to work?

Answered: 1 week ago

Question

Evaluate Figure 6-9; what other questions would you ask, and why?

Answered: 1 week ago