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 4-year loans at an interest rate of 15%. If a customer can afford to pay $229 per month, find the price of the most expensive car that can be purchased. A)$ 8,238.33 B)$ 8,237.12 C)$ 8,228.31 D)$ 8,233.95 E)$ 8,217.96

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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 4-year loans at an interest rate of 15%. If a customer can afford to pay $229 per month, find the price of the most expensive car that can be purchased. A)$ 8,238.33 B)$ 8,237.12 C)$ 8,228.31 D)$ 8,233.95 E)$ 8,217.96

Some Lending Institutions Calculate the Monthly Payment M on a Loan