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 = 40,000, r = 5, t = 13, m =6

Answer 1

m times a Find the periodic payment R required to amortize a lown of P dollars over years with interest charged at the rate of ro%/ year compounded year. (Round your answer to the nearest cent.) p=40,000, p=5,t=13, m=6. Ana :- The formula for calculating the periodic payment R is given by R = P. P (1+pon (1+p) - t where, p = loan amount p = interest reate per period % YO n = total number of periods Loom = txm . Now here, P = 40,000 þ = Joox 6 = 0.00833 2006 n = 13x6=78 Therefore, 0.00833 (1+0.00833) 78 R= 40000 (170.00 833) 78 40000 X 0.00 833x (1.00833) (1.00833) to - 1 -1 78 = 690.39571 ^ 609.40 (nounding to nearest cent) Hence, the required periodic payment is $ 699.40