Answer:
$679.31
Step-by-step explanation:
The formula for the monthly payment (P) on a loan of A dollars that is paid back in equal monthly payments over n months, at an annual interest rate of i % is
[tex]P = A(\frac{i}{1-(1+i)^{-n}})[/tex]
We must express the interest rate on a monthly basis.
i = 8.3 %/yr = 0.6917 %/mo = 0.006 917
A = $90 000
n = 360 mo
[tex]P = 90 000(\frac{0.006 917}{1-(1+0.006 917)^{-360}})[/tex]
[tex]P = \frac{622.5}{1-1.006 917^{-360}}[/tex]
[tex]P = \frac{622.5}{1 - 0.083 62}[/tex]
[tex]P = \frac{622.5}{0.9164}[/tex]
P = $679.31
Heidi’s monthly payment is $679.31.
