Explanation Given Information: Payment frequency is 1 a month, the time duration in 4 years, the nominal rate of return is 13.5 % and present value amount is $ 2 , 200 . Formula used: The formula to compute the amortization payment is, Amortization payment = P V × i 1 − ( 1 + i ) − n Here PV is the present value, i is the interest rate per period (nominal rate ÷ periods per year) and n is the number of periods (years × periods per year). Calculation: Consider that payment frequency is 1 a month, the time duration in 4 years, the nominal rate of return is 13.5 % and present value amount is $ 2 , 200 . The rate period is 1.125 % or 0.01125 ( 13.5 % ÷ 12 period per year ) . The number of periods is 48 ( 4 years × 12 period per year )

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 12, Problem 32AT

To determine

To calculate: The amount of loan payment when payment frequency is 1 a month, the time duration in 4 years, the nominal rate of return is 13.5% and present value amount is $2,200.

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Chapter 12, Problem 31AT

Chapter 12, Problem 33AT

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Chapter 12 Solutions

Contemporary Mathematics for Business & Consumers

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The amount of loan payment when payment frequency is 1 a month, the time duration in 4 years, the nominal rate of return is 13.5 % and present value amount is $ 2 , 200 .

Solution Summary: The author calculates the amortization or loan payment for 59.568 when payment frequency is 1 a month, time duration in 4 years, nominal rate of return, and present value amount.

To calculate: The amount of loan payment when payment frequency is 1 a month, the time duration in 4 years, the nominal rate of return is 13.5% and present value amount is $2,200.

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Chapter 12 Solutions