Consider the monthly payment formula M=Pr(1+r)^n/(1+r)^n-1. what is the name of the formula you get if you solve for P? what about if you solve for n? what special function do you need to use when solving for n?

WRITTEN RESPONSE QUESTION PLEASE ANSWER ASAP WILL AWARD BRAINLIEST.

Answers

Answer 1

Answer:

0.0061

Step-by-step drip check:

Answer 2

The name of the formula you get if you solve for P could be "Principal (loan amount)" "Term of the loan (in months)" or "Number of monthly payments"

Logarithms;

[tex]n = \dfrac{ ln[1 - \dfrac{Pr}{M} ]}{ln(1+r)}[/tex]

What is Monthly Payment Formula?

Consider the monthly payment formula

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

where: M = monthly payment.

P = principal loan amount.

r = interest rate per month (in decimal form).

n = term of the loan (in months).

If we will solve for P, the name of the formula is "Principal (loan amount)".

If we solve for n, the formula is "Term of the loan (in months)" or "Number of monthly payments".

When solving for n, we have to use logarithms:

[tex]M (1+r)^n-1=Pr(1+r)^n\\\\\dfrac{1}{ (1+r)^n} = 1 - \dfrac{Pr}{M} \\\\ln\dfrac{1}{ (1+r)^n} = ln[1 - \dfrac{Pr}{M} ]\\\\\\n = \dfrac{ ln[1 - \dfrac{Pr}{M} ]}{ln(1+r)}[/tex]

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