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 8-year loans at an interest rate of 10%. If a customer can afford to pay $122 per month, find the price of the most expensive car that can be purchased. A)$ 8,050.00 B)$ 8,045.62 C)$ 8,039.98 D)$ 8,048.79 E)$ 8,029.63

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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 8-year loans at an interest rate of 10%. If a customer can afford to pay $122 per month, find the price of the most expensive car that can be purchased. A)$ 8,050.00 B)$ 8,045.62 C)$ 8,039.98 D)$ 8,048.79 E)$ 8,029.63

Some Lending Institutions Calculate the Monthly Payment M on a Loan