For the installment loan, use the installment payment formula to determine the monthly payment. Amount...

Question

SnapAndSolve AI · Accepted Answer

To find the monthly payment, use the formula for an installment loan:

M = P * (r/n) / (1 - (1 + r/n)^(-nt))

Where:

Substitute the values into the formula:

M = 14000 * (0.055/12) / (1 - (1 + 0.055/12)^(-12*4))

Calculate:

M = 14000 * 0.004583333 / (1 - (1.004583333)^(-48))

M = 14000 * 0.004583333 / (1 - 0.807)

M = 14000 * 0.004583333 / 0.193

M ≈ 326.93

The monthly payment is $326.93.

Answer