Which of these groups of values plugged into the TVM Solver of a graphing calculator will give the monthly payment for a 20-year loan

Question

Which of these groups of values plugged into the TVM Solver of a graphing
calculator will give the monthly payment for a 20-year loan for $205,000 at
5.6% interest, compounded monthly?
O
A. N=20,1% = 5.6; PV=-205000; PMT=;FV=0; P/Y=12; C/Y=12;
PMT:END
B. N-240;1% = 5.6; PV=-205000; PMT=;FV=0;P/Y=12; C/Y=12;
PMT:END
O
O C. N-240;1% = 5.6; PV=0; PMT=;FV–205000;P/Y=12; C/Y=12;
PMT:END
D. N=20; 1% = 5.6; PV-O; PMT=;FV–205000; P/Y=12; C/Y=12;
PMT:END
O

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Sarah 2 hours 2021-09-13T06:30:34+00:00 1 Answer 0

Answers ( )

    0
    2021-09-13T06:31:49+00:00

    Answer:

    The correct option is B,N-240;1% = 5.6; PV=-205000; PMT=;FV=0;P/Y=12; C/Y=12;

    PMT: END

    Step-by-step explanation:

    The compounding is done monthly which is means that the number of periods for which the compounding is carried is the number of months in twenty years,which is 20*12=240

    Only options B and C have N as 240.

    The present worth of the loan ,which is the amount of loan is $205,000

    Option B has PV=-$205,000

    Option C has PV =$0

    Ultimately option B which stated the loan amount correctly is the right answer.

    Also,the future value of the loan is unknown,hence option B has it as $0-unknown while option C  stated it as -$205,000,which effectively means that the PV was used as FV

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