Answer :
To solve for [tex]\( r \)[/tex] in the monthly payment formula when given an interest rate of 7.3%, follow these steps:
1. Identify the interest rate given: The nominal annual interest rate provided is 7.3%.
2. Convert the percentage interest rate to a decimal format:
- The given interest rate is 7.3%. To convert this percentage to a decimal, divide by 100.
- [tex]\[ r = \frac{7.3}{100} \][/tex]
3. Simplify the decimal conversion:
- [tex]\[ r = 0.073 \][/tex]
Thus, the value of [tex]\( r \)[/tex] to be used in the monthly payment formula [tex]\( M = \frac{\operatorname{Pr}(1+r)^n}{(1+r)^n-1} \)[/tex] is [tex]\( 0.073 \)[/tex].
1. Identify the interest rate given: The nominal annual interest rate provided is 7.3%.
2. Convert the percentage interest rate to a decimal format:
- The given interest rate is 7.3%. To convert this percentage to a decimal, divide by 100.
- [tex]\[ r = \frac{7.3}{100} \][/tex]
3. Simplify the decimal conversion:
- [tex]\[ r = 0.073 \][/tex]
Thus, the value of [tex]\( r \)[/tex] to be used in the monthly payment formula [tex]\( M = \frac{\operatorname{Pr}(1+r)^n}{(1+r)^n-1} \)[/tex] is [tex]\( 0.073 \)[/tex].
