Find the periodic payment R required to amortize a loan of P dollars over t yr 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 yr with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.)
P = 60,000, r = 3, t = 14, m = 2

mathhelper · Answer

P = R( 1 - (1 + r/m)^(mt)/(r/m) 60000 = R(1 - (1 + .03/2)^-(mt) )/(.03/2) 60000 = R(1 - 1.015^-28 )/.015 R = 5640.06