## Math Problem Statement

uppose you want to borrow

$110 comma 000110,000

and you find a bank offering a

2020-year

term for a loan of that amount, with an APR of

1212%.

Complete parts (a) and (b) below.

Question content area bottom

Part 1

(a) What are your monthly payments?

PMTequals=$1,211.191,211.19

(Round to the nearest cent as needed.)

Part 2

(b) Instead of making

1212

payments per year, you save enough money to make a

1313th

payment each year, of the same amount as your regular monthly payment found in part

(a).

How long will it take to pay off the loan?

Yequals=2020

(Type an integer or decimal rounded to one decimal place as needed.)

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Loan Amortization

Compound Interest

Extra Payments

### Formulas

Loan payment formula: PMT = [P * r * (1 + r)^n] / [(1 + r)^n - 1]

Number of payments with extra payment: Adjusted using additional payment formula

### Theorems

Time value of money

Loan amortization schedule

### Suitable Grade Level

Grades 10-12 (or early college-level finance)

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