Suppose you borrow $10,000 for n months to buy a car at an interest rate of 7.8% compounded monthly. The size of each month's payment R is given by the formula

(a) Rewrite the expression on the right-hand side of this formula as a fraction with only positive exponents.
(b) Find the monthly payment for a 48-month loan. Use both the original formula and your result from (a). (Both formulas should give the same payment.)

Transcribed Image Text:

0.0065 1- (1.0065) R = 10,000