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Find the periodic payment R required to amortize a loan of P dollars over t years with interest...

Question:

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

P = 130,000

r = 11.5

m = 12

Calculating Periodic Payments on Loans:

Calculating loan payments can be something of a complex job. However, anyone buying a car or house can see the importance of the task, especially when it comes to seeing how much he or she will have to allocate for a monthly loan payment.

Answer and Explanation:

The formula for calculating a periodic payment A is as follows, where m is the number of compounding periods per period and i is the interest rate per...

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Calculating Monthly Loan Payments

from Remedial Algebra I

Chapter 25 / Lesson 8
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