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Craig sent this problem: “You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months.

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Presentation on theme: "Craig sent this problem: “You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months."— Presentation transcript:

1 Craig sent this problem: “You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months. What is the new monthly payment?” (a)What have you already paid? (b)What did you owe, with interest? (c)What is now owed? (d)What is the new payment? (Assuming 60 months at 9% again.)

2 Craig sent this problem: You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months. What is the new monthly payment? Solve for R:

3

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