Multiple Choice Question (MCQ)

m=\dfrac{\Big( \dfrac{r}{1200} \Big) \Big( 1+\dfrac{r}{1200} \Big) ^N}{\Big( \dfrac{r}{1200} \Big) ^N-1} P

The formula above gives the monthly payment m needed to pay off a loan of P dollars at r percent annual interest over N months. Which of the following gives P in terms of m, r, and N?


  1. ×

    P=\dfrac{\Big( \dfrac{r}{1200} \Big) \Big( 1+\dfrac{r}{1200} \Big) ^N}{\Big( \dfrac{r}{1200} \Big) ^N-1} m

  2. P=\dfrac{\Big( \dfrac{r}{1200} \Big) ^N-1}{\Big( \dfrac{r}{1200} \Big) \Big( 1+\dfrac{r}{1200} \Big) ^N} m



  3. ×

    P=\Big( \dfrac{r}{1200}\Big) m

  4. ×

    P=\Big( \dfrac{1200}{r}\Big) m

Collected in the board: Algebraic equation

Steven Zheng posted 2 weeks ago


Answer

  1. Express P in terms of m, r, and N

    Just multiply both sides of the equation m=\dfrac{\Big( \dfrac{r}{1200} \Big) \Big( 1+\dfrac{r}{1200} \Big) ^N}{\Big( \dfrac{r}{1200} \Big) ^N-1} P by \dfrac{\Big( \dfrac{r}{1200} \Big) ^N-1}{\Big( \dfrac{r}{1200} \Big) \Big( 1+\dfrac{r}{1200} \Big) ^N}


    Choice B is correct.



Steven Zheng posted 2 weeks ago

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