Mathematics
: asked on layseapoole

02.09.2021

Round your answer to the nearest hundred dollars.

Do NOT round until you have calculated the final answer.

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02.10.2023, solved by verified expert

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1 students found this answer helpful

**Answer:**

$84,916.23

**Step-by-step explanation:**

To find the maximum price for a boat that Ryan's budget can afford, we can use the formula for calculating the principal loan amount (the initial amount borrowed) for a fixed-rate loan:

P = M / [ (r/12)x(1 - 1/(1+r/12)^(nx12)]

Where:

*P* is the principal loan amount (what we want to find).

*M* is the maximum monthly payment Ryan can afford ($900).

*r* is the annual interest rate (10% or 0.10).

*n* is the total number of years (8 years).

First, convert the annual interest rate to a monthly interest rate:

r=0.10/12=0.0083333

Now, plug these values into the formula:

P = 900 / [ (0.0083333 / 12)x(1- 1/(1 + 0.0083333/12)^(8x12) ]

Now, calculate *P*:

*P*≈$84,916.23

So, the maximum price for a boat that Ryan's budget can afford is approximately **$84,916.23** when rounded to the nearest hundred dollars.

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