Harley took out a 1-year loan for $2800 at an electronics store to be paid back

with monthly payments at a 16.8% APR, compounded monthly. If the loan

yments for the first 3 months, how much will Harley owe when he

begins making payments?

A. $3308.37

B. $3173.22

C. $2800.00

D. $2919.25

Step-by-step explanation:

For a Principal P loaned at an annual rate, r% for a period of n years compounded k times a year,

Mr Harley's Loan, P=$2800

The Annual Interest Rate,r =16.8%=0.168

Since the interest is compounded monthly, the period, k=12

Monthly Interest Rate=0.168/12

However, since we are required to calculate how much Mr Harley will owe after three months, our time, nk=3 Months.

Therefore:

step-by-step explanation:

i found the life tables for the year 2012. 

life table of males at age 30. probability of dying between ages x and x+1

total population:  

29–30 . . . . . . . . . . . . 0.001030

30–31 . . . . . . . . . . . . 0.001061

males:  

29–30 . . . . . . . . . . . . 0.001420

30–31 . . . . . . . . . . . . 0.001448

white population

29–30 . . . . . . . . . . . . 0.001005

30–31 . . . . . . . . . . . . 0.001037

white males

29–30 . . . . . . . . . . . . 0.001372

30–31 . . . . . . . . . . . . 0.001399

non hispanic white population

29–30 . . . . . . . . . . . . 0.001083

30–31 . . . . . . . . . . . . 0.001116

non hispanic white males

29–30 . . . . . . . . . . . . 0.001477

30–31 . . . . . . . . . . . . 0.001503

jacob, non hispanic white male. 30 years old.

probability that jacob lives to be 30 years old. 

since the given probabilities are probabilities of dying, i think we simply subtract it from 1 to get the probability of living. we will use the probability of non hispanic white male.

                                          probability of living to be 30 y.o.

29 - 30 : 1 - 0.001477 = 0.998523

30 - 31 : 1 - 0.001503 = 0.998497