Math Problem Statement
A sailboat costs
$ 19 comma 931$19,931.
You pay
10%
down and amortize the rest with equal monthly payments over a
15-year
period. If you must pay
8.1 %
compounded monthly, what is your monthly payment? How much interest will you pay?
Solution
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Math Problem Analysis
Mathematical Concepts
Loan Amortization
Interest Rate Conversion
Compound Interest
Formulas
Amortization Formula: M = P * [r(1 + r)^n] / [(1 + r)^n - 1]
Interest Rate Conversion: r = Annual Rate / 12
Theorems
Amortization of Loans
Suitable Grade Level
College Level or Advanced High School (Grades 11-12)
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