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25 November, 14:35

The balance on a car loan after 4 years is $8,996.32. The interest rate is 5.6% compounding annually. What was the initial value of the loan?

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  1. 25 November, 14:50
    0
    8000000 is the answer.
  2. 25 November, 14:50
    0
    8996.32=p (1+0.056) ^4

    Solve for p

    P=8996.32 / (1+0.056) ^4

    P=7234.51
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