For the best terms on a loan or credit card, you need a credit score above 700.
ID: 2768509 • Letter: F
Question
For the best terms on a loan or credit card, you need a credit score above 700. To achieve this, start establishing credit now. Pay all of your bills on time. In addition, use only one-third of your available credit limit and pay off your revolving balance(s) each month. R.J.Johnson has excellent credit. She wants to purchase a piece of equipment for her business and was offered 6% for 60 months for the $64,000 unit.
What is her monthly payment by formula? (Round your answer to the nearest cent.)
For the best terms on a loan or credit card, you need a credit score above 700. To achieve this, start establishing credit now. Pay all of your bills on time. In addition, use only one-third of your available credit limit and pay off your revolving balance(s) each month. R.J.Johnson has excellent credit. She wants to purchase a piece of equipment for her business and was offered 6% for 60 months for the $64,000 unit.
What is her monthly payment by formula? (Round your answer to the nearest cent.)
Monthly payment $Explanation / Answer
Monthly payment= MB0*(r)/(1-(1/(1+r)^(T))
Monthly payment= 64,000*(.5%)/(1-(1/(1+.5%)^(60))
Monthly payment= 64,000*(.005)/(1-(1/(1.005)^(60))
Monthly payment= 320/(1-0.74137219624434)
Monthly payment= 320/(0.25862780375566)
Monthly payment=$ 1237.30
Amount_Financed MB0 $ 64,000.00 Rate R 6.00% Monthly rate r=R/12 0.50% Term (years) T' 5 Term (months) T=T'*12 60 Monthly Payment MP=PMT(r,T,-MB0) $ 1,237.30 (MP=MB0*(r/12)/(1-(1/(1+r/12)^(T*12))) $ 1,237.30