you can afford to make a payment of $280 per month for five years the APR is 2.4%

what is the value of R?

What is the value of t?

Which formula would you use to calculate the monthly payment?

calculate how much you can afford to borrow.

4.1 Saving money: Simple Interest Earned = Principal Yearly interest rate x Time in years APR r = Period interest rate = Number of periods in a year Balance after t periods (compound interest) = Principal x (1 + r) . . Balance after y years (compound interest) = Principal * (1 + APY) 72 The Rule of 72: Number of years to double = APR (as a percent) APR + = 4.2 Borrowing: Monthly payment Amount borrowed x r(1+r) ((1+r)t-1) Amount borrowed = Monthly paymentx ((1+r)-1) (r(1+r)) 4.3 Saving for the long term: Balance after t deposits = Deposits x ((1+r)-1) Goal xr Needed deposit = ((1+r)-1) Nest egg x r(1+r)' Monthly annuity yield ((1+r)-1) Annuity yield goal x ((1+r)'-1) Nest egg needed = (r(1+r)) . 4.4 Credit cards and Inflation: APR Finance charge = -X (Previous balance - payments + purchases) 12 Balance after t minimum payments = Initial balance ((1+r)(1 m))