Chuck Wells is planning to buy a Winnebago motor home. The listed price is . Chuck can get a secured add-on interest
payments below per month and amortize the loan in 42 months.
(a) Find Chuck’s monthly payment (in ) with these conditions. (Round your answer to the nearest cent.)
Enter a number.

Ask by Barker Vaughn. in the United States

Mar 26,2025

Question

Chuck Wells is planning to buy a Winnebago motor home. The listed price is . Chuck can get a secured add-on interest
payments below per month and amortize the loan in 42 months.
(a) Find Chuck’s monthly payment (in ) with these conditions. (Round your answer to the nearest cent.)
Enter a number.

Ask by Barker Vaughn. in the United States

Mar 26,2025

UpStudy AI · Accepted Answer

To find Chuck's monthly payment, we can use the formula for the monthly payment of an amortized loan, which is given by:

$$
M = \frac{P \cdot r}{1 - (1 + r)^{-n}}
$$

Where:
- $$ M $$ is the monthly payment
- $$ P $$ is the principal amount (the loan amount)
- $$ r $$ is the monthly interest rate (annual interest rate divided by 12)
- $$ n $$ is the number of payments (loan term in months)

Given:
- $$ P = 155,000 $$
- $$ n = 42 $$
- The monthly payment $$ M $$ must be less than $$ 3,600 $$.

Since we don't have the interest rate, we will first calculate the maximum monthly payment without the interest rate and then check if it fits within the limit.

Let's calculate the maximum monthly payment $$ M $$ using the principal and the number of months.

We can rearrange the formula to find $$ M $$:

$$
M = \frac{P}{n}
$$

Now, substituting the values:

$$
M = \frac{155,000}{42}
$$

Let's calculate this value.
Calculate the value by following steps:
- step0: Calculate:
  $$\frac{155000}{42}$$
- step1: Reduce the fraction:
  $$\frac{77500}{21}$$
Calculating the maximum monthly payment:

$$
M = \frac{155,000}{42} \approx 3690.48
$$

Thus, Chuck's monthly payment would be approximately $$ 3690.48 $$ dollars.

Since this amount is below the limit of $$ 3,600 $$, it fits within the conditions provided.

Therefore, Chuck's monthly payment is approximately **$3,690.48** (rounded to the nearest cent).
Chuck's monthly payment is approximately $3,690.48.

Chuck Wells is planning to buy a Winnebago motor home. The listed price is . Chuck can get a secured add-on interest
payments below per month and amortize the loan in 42 months.
(a) Find Chuck’s monthly payment (in ) with these conditions. (Round your answer to the nearest cent.)
Enter a number.

Upstudy AI Solution

Answer

Solution

The Deep Dive

Final Calculation

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Chuck Wells is planning to buy a Winnebago motor home. The listed price is . Chuck can get a secured add-on interest payments below per month and amortize the loan in 42 months. (a) Find Chuck’s monthly payment (in ) with these conditions. (Round your answer to the nearest cent.) Enter a number.

Upstudy AI Solution

Answer

Solution

The Deep Dive

Final Calculation

Related Questions

Latest Arithmetic Questions

Chuck Wells is planning to buy a Winnebago motor home. The listed price is . Chuck can get a secured add-on interest
payments below per month and amortize the loan in 42 months.
(a) Find Chuck’s monthly payment (in ) with these conditions. (Round your answer to the nearest cent.)
Enter a number.