## 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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2021-09-13T06:30:34+00:00
2021-09-13T06:30:34+00:00 1 Answer
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## Answers ( )

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