For the best terms on a loan or credit card, you need a credit score above 700.
ID: 2770402 • 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 $55,000 unit.
What is her monthly payment by formula? (Round your answer to the nearest cent.)
What is her monthly payment by formula? (Round your answer to the nearest cent.)
Explanation / Answer
Formula for loan amortization = A= [i*P*(1+i)^n]/[(1+i)^n-1] Amt $ A = periodical installment ? P=Loan amount = 55,000 i= interest rate per period = 0.500% per month n=total no of payments 60 months A =[0.005*55000*1.005^60]/(1.005^60-1) A =1063.30 So Monthly payment is $1,063.30