To find: the periodic payment R of a loan with present value PV and an annual interest rate r for a term of t years, with payments made and interest charged 12 times per year.
Given information:
The data given is:
Formula Used:
Present Value of an Annuity
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is:
Explanation:
Here, the interest is credited 12 times a year, so the interest rate is:
The number of payments is:
Substitute these values in the above formula,
Chapter 3 Solutions
PRECALCULUS:GRAPHICAL,...-NASTA ED.
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