Question
Now suppose that the dealership instead offers you a financing package. The package involves making monthly payments of $P over 60 months at a monthly
Now suppose that the dealership instead offers you a financing package. The package involves making monthly payments of $P over 60 months at a monthly interest rate of i% for a loan amount of $L. In other words: L= P + P + P +...+ P 1+i (1+i)2 (1+i)3 (1+i)n where n = 60. Analytically, solve for P as a function of L, i and n. [Hint: you may want to substitute 1 and use the formula for the sum of a finite geometric series; (1+i) notes on geometric series may be found on the lectures page of the course homepage, or within Canvas.] Note: for this question, you need to derive an expression P = g (L, i, n); you will not get any credit if you do not show your working. You do not need to calculate and numbers or compute anything.
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