If you borrow L dollars for N years at a yearly interest rate r, your monthly payment of P dollars is calculated using the equation (a) Find P if L $5000, N 3, and r 0 08 (8 ) (b) You are offered a loan of L $5000 to be paid back over 3 years with monthly payments of P $200 Use Newtons Method to co...

a b 100812 100667 b Starting from PL1 2512 5000 Since LP 5000200 25 w ...

If you borrow L dollars for N years at a yearly interest rate r, your monthly payment

Question:

If you borrow L dollars for N years at a yearly interest rate r, your monthly payment of P dollars is calculated using the equation

1-6-12N 6-1 L=P where b = 1 + r 12

(a) Find P if L = $5000, N = 3, and r = 0.08 (8%).
(b) You are offered a loan of L = $5000 to be paid back over 3 years with monthly payments of P = $200. Use Newton’s Method to compute b and find the implied interest rate r of this loan.

(L/P)b2N+1(1+ L/P)b2N + 1 = 0

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Calculus

ISBN: 9781319055844

4th Edition

Authors: Jon Rogawski, Colin Adams, Robert Franzosa

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Question Posted: Nov 26, 2023 03:05 AM

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If you borrow L dollars for N years at a yearly interest rate r, your monthly payment

Question:

1-6-12N 6-1 L=P 이 where b = 1 + r 12

Step by Step Answer:

a b 100812 100667 b Starting from PL1 2512 5000 Since LP 5000200 25 w...View the full answer

Calculus

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