## Math Problem Statement

Choose the best answer to the following question. Explain your reasoning with one or more complete sentences. In the loan payment formula, assuming all other variables are constant, the monthly payment does what? Question content area bottom Part 1 Choose the correct answer below. A. The monthly payment increases as APR increases. As the exponent in the denominator increases, the APR increases. B. The monthly payment increases as P increases. As the amount borrowed increases, the numerator of the PMT equation becomes larger and thus, the PMT increases. C. The monthly payment increases as P increases because in the loan payment formula, P is the regular monthly payment. D. The monthly payment increases as Y increases. As the amount borrowed increases, the numerator of the PMT equation becomes larger and thus, Y increases. E. The monthly payment increases as APR increases. As the amount borrowed increases, the numerator of the PMT equation becomes larger and thus, the APR increases. F. The monthly payment increases as Y increases. As the exponent in the denominator increases, the regular monthly payments increase.

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Algebra

Finance

Loan Payment Calculation

### Formulas

PMT = (P * r) / (1 - (1 + r)^-n)

### Theorems

Loan Payment Formula

### Suitable Grade Level

Grades 10-12

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