Marcel gives Philip a business loan of $10,000 for 2 years with an annual interest rate of 9%.
What is Philip's monthly payment on the loan, rounded to 2 decimal places?
$456.85
$1030.23
$37.50
$1800.00
2 answers
https://www.calculator.net/amortization-calculator.html?cloanamount=10000&cloanterm=2&cinterestrate=9&printit=0&x=61&y=17
A = P r (1+r)^n / [ (1+r)^n -1]
where
A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods
here n = 24 months
r = .09/12 = 0.0075
(1+r) ^24 = (1.0075)^24 = 1.1964
so
10,000 (.0075)1.1964 / [ .1964]
= 456.87
where
A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods
here n = 24 months
r = .09/12 = 0.0075
(1+r) ^24 = (1.0075)^24 = 1.1964
so
10,000 (.0075)1.1964 / [ .1964]
= 456.87
1 answer