Describe the effect an increase in i, the interest rate applied to the present value, has on the monthly payment P in the formula P = P V times StartFraction i over 1 minus (1 i) superscript negative n Baseline EndFraction a. An increase in i, the interest rate, will not change P, the monthly payment. B. An increase in i, the interest rate, will create an increase in P, the monthly payment. C. An increase in i, the interest rate, will create a decrease in P, the monthly payment. D. An increase in i, the interest rate, can increase or decrease P, the monthly payment, depending on the value of PV.

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ayishiaotoole

04/05/2017

Mathematics

High School

answered

Describe the effect an increase in i, the interest rate applied to the present value, has on the monthly payment P in the formula a. An increase in i, the interest rate, will not change P, the monthly payment. b. An increase in i, the interest rate, will create an increase in P, the monthly payment. c. An increase in i, the interest rate, will create a decrease in P, the monthly payment. d. An increase in i, the interest rate, can increase or decrease P, the monthly payment, depending on the value of PV.

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SerenaBochenek

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B. An increase in i, the interest rate, will create an increase in P, the monthly payment.

Step-by-step explanation:

We have the formula for the monthly payment as,

,

where P = monthly payment, i = rate of interest, PV = present value and n = time period.

Now, as i increase we get that (1+i) increases and so increases.

This gives us that, decreases and so decreases

Therefore, increases.

So, we get that as i increases , the value of P will increase.

Hence, option B is correct.

a28=58

step-by-step explanation:

a1=a1+(n-1)d

a28= 4+ (28-1)2

a28=4+(27)(2)

a28=4+54

a28=58