3Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year.

Question

Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.)

P = 16,000, r = 4, t = 6, m = 12

This is a super tricky one!

Answer 1

The formula for interest is: fv=p*(1+int/c)^(n*t)

c compound

fv future value

p principal

i interest

n #yrs

t times yrly