Some lending institutions calculate the monthly payment M on a loan of L dollars at an interest rate r (expressed as a decimal) by using the formula: where k = [1 + ( r / 12 )]¹²^t and t is the number of years that the loan is in effect. An automobile dealer offers customers no-down-payment 7-year loans at an interest rate of 7%. If a customer can afford to pay $108 per month, find the price of the most expensive car that can be purchased. A)$ 7,145.44 B)$ 7,155.79 C)$ 7,161.43 D)$ 7,165.81 E)$ 7,164.60

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The Answer of Some lending institutions calculate the monthly payment M on a loan of L dollars at an interest rate r (expressed as a decimal) by using the formula: where k = [1 + ( r / 12 )]¹²^t and t is the number of years that the loan is in effect. An automobile dealer offers customers no-down-payment 7-year loans at an interest rate of 7%. If a customer can afford to pay $108 per month, find the price of the most expensive car that can be purchased. A)$ 7,145.44 B)$ 7,155.79 C)$ 7,161.43 D)$ 7,165.81 E)$ 7,164.60

Some Lending Institutions Calculate the Monthly Payment M on a Loan