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Travis is considering taking out a 20-year loan with monthly payments of
$380 at an APR of 1.4%, compounded monthly, and this equates to a loan of
$79,504.54. Assuming that the APR and the length of the loan remain fixed,
which of these is a correct statement?

Travis is considering taking out a 20year loan with monthly payments of 380 at an APR of 14 compounded monthly and this equates to a loan of 7950454 Assuming th class=

Respuesta :

Answer:

travis monthly payment $350 the amt of the loan that he is considering taking out would be less than $79,504.54

Step-by-step explanation:

Apex

The correct statement is A; If travis monthly payment $350 the amt of the loan that he is considering taking out would be less than $79,504.54

How to calculate EMI?

The EMI formula is :

[tex]\dfrac{p r (1+ r)^n}{(1+ r)^n- 1}[/tex]

here r = 5.1/12/100 = 0.00425

p = 79,504.54

and n = 20*12 = 240

Putting the values in formula we get

= (79,504.54*0.00425*2.767)/1.767

= $350

Hence, for an amount of $79,504.54, the monthly payment becomes $380. So, if travis is paying $350, he must have taken less loan than $79,504.54.

The correct statement is A; If travis monthly payment $350 the amt of the loan that he is considering taking out would be less than $79,504.54

Learn more about the concept here;

https://brainly.com/question/11814596

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