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Back to 6.8 The Basics of Loans

6.8 Exercise 3

Avg difficulty 2.5

In the following, calculate the payment necessary to pay off the loan with the given details. The payments are monthly.

  1. A car loan taken out for $28,500 at an annual interest rate of 3.99% for 5 years.
  2. A home loan taken out for $136,700 and an annual interest rate of 5.75% for 15 years.

OpenStax Contemporary Mathematics, 6.8 The Basics of Loans, exercise 3

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.