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a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $. (Round to the nearest dollar as needed.) 1+ n A -nt b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.

a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $. (Round to the nearest dollar as needed.) 1+ n A -nt b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 53E: Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and...
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The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n is the number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below. 1+ P=PMAT (1-(1-4) - n r A n a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $ (Round to the nearest dollar as needed.) r 1+- n b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.
Transcribed Image Text:The unpaid balance of an installment loan is equal to the present value of the remaining payments. The unpaid balance, P, is given by the formula below where PMT is the regular payment amount, r is the annual interest rate, n is the number of payments per year, and t is the number of years remaining in the loan. Complete parts a. and b. below. 1+ P=PMAT (1-(1-4) - n r A n a. Use the loan payment formula to derive the unpaid balance formula. Explain how to derive the unpaid balance formula. Choose the correct answer below. Multiply both sides of the loan payment formula by 1- The unpaid balance after three years is $ (Round to the nearest dollar as needed.) r 1+- n b. The price of a car is $24,000. You have saved 20% of the price as a down payment. After the down payment, the balance is financed with a 6-year loan with monthly payments at 7%. Determine the unpaid balance after three years.
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