contestada

120
The formula above gives the monthly payment m
needed to pay off a loan of P dollars at r percent
annual interest over 9 months. Which of the
following give P in terms of m r and N?

Respuesta :

The correct expression of P in terms of m, r and N is;

[tex]P = \frac{[(1 + \frac{r}{1200})^{N} - 1] m}{{(\frac{r}{1200}) (1 + \frac{r}{1200})^{N} })}[/tex]

Subject of the formula

The formula is missing and it is;

[tex]m = \frac{(\frac{r}{1200}) (1 + \frac{r}{1200})^{N} P}{(1 + \frac{r}{1200})^{N} - 1}[/tex]

Now, we want to find P in terms of m, r and N. This means we are making P the subject of the formula.

When we cross multiply the given expression, we have;

[tex]m[(1 + \frac{r}{1200})^{N} - 1] = {(\frac{r}{1200}) (1 + \frac{r}{1200})^{N} * P}}[/tex]

This would be simplified to make P the subject as;

[tex]P = \frac{[(1 + \frac{r}{1200})^{N} - 1] m}{{(\frac{r}{1200}) (1 + \frac{r}{1200})^{N} })}[/tex]

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