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 = 100,000, r = 9.5, t = 23, m = 12

Reiny · Answer

i =.095/12 = .00791666... n = 23x12 = 276 Present value = payment [ 1 - (1+i)^-n]/i 100000= paym[1 - 1.007916667^-276]/.00791666 100000= paym (111.9853...) payment = 892.97

shubhangee · Answer

in this example how to find i