Question

In the monthly payment formula M=Pr(1+r)"/(1+r)^-1'for r if the interest rate is 4.8%? what value would you put for r if the interest rate is 4.8%?A. 0.0048B. 4.8C. 0.004D. 0.48

Answer 1

Here, given the monthly payment formula as:

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

Given an interest rate of 4.8%, the value you would put for r is:

r = 4.8%

SImplify 4.8%:

$\frac{4.8}{100}=0.048$

The value to input as r which is rate is 0.048