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.)

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 = 160,000, r = 2.5, t = 25, m = 2

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Answer 1

R = P[r(1 + r)^mt / ((1 + r)^mt - 1)]

Substitute given values and calculate.