where
P=monthly payment...=200
L=amount borrowed...=to be found
i=monthly rate...=5/12
n=term in months..=30*12=360
now, can you continue?
Wanda wants to take out a loan. She can afford to make monthly payments of 200 dollars and wants to pay the loan off after exactly 30 years.
What is the maximum amount that Wanda can afford to borrow if the bank charges interest at an annual rate of 5 percent, compounded monthly?
(Give your answer, in dollars, correct to the nearest dollar.)
Help please!
Thank you!