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 = 11,000, r = 4, t = 4, m = 2

Reiny · Answer

i = .04/2 = .02 n = 4*2 = 8 PV = 11000 paym = ? 11000 = paym(1 - 1.02^-8)/.02 solve for paym, let me know what you got.