Fred wants to take out a loan. Suppose he can afford to make monthly payments of 300 dollars and the bank charges interest at an annual rate of 8 percent, compounded monthly.
What is the maximum amount that Fred could afford to borrow if the loan is to be paid off eventually?
(Give your answer, in dollars, correct to the nearest dollar.)
Can anyone answer this Personal Finance problem?auto financing
what does your textbook say? it may offer a clue. BTW, its a mortgage question. tba
Can anyone answer this Personal Finance problem? loan
This sounds like a home work question. Since you do not have a pay off period, you are looking for the amount where $300 is the monthly interest charge. Hint that question is simple division.|||lol. i like frozen yorgert.|||Here Your payment is $300.00 for a $12,289 loan.
Your $12,289 loan has a payment of $300.00 per month for 48 months. If you make all of your payments on this loan, and do not prepay any of the principal, the total interest for this loan is $2,111.57.
Loan summary
Monthly payment $300.00
Loan amount $12,289
Interest rate 8.000%
Term 48 months
Total of payments $14,400.57
Total interest paid $2,111.57
This answer is from Bloomberg.com%26#039;s calculators. The link is listed below.
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