Monthly Payment

Algebra

Monthly Payment

Postby Guest » Thu Mar 30, 2017 4:03 pm

A loan of $2700 is given for 3 yrs., with an interest rate of 13.86%. Determine monthly pmt.

Formula;

M = P /[ 1 - (1 + i)^-n / i]

M = monthly pmt.
P = total amt. of loan.
n = number of pmts.
i = rate of interest.


M = 2700 / [1 - (1 + .1386)^ -36 / .1386]

M = 2700 / [1 - (1.1386)^ -36 / .1386]

Not sure how to continue.





Guest
 

Re: Monthly Payment

Postby Guest » Thu Apr 06, 2017 11:21 am

Please reply. Thanks.

Guest
 

Re: Monthly Payment

Postby Math Tutor » Thu Apr 06, 2017 3:35 pm

I do not get it.
You cannot calculate the expression?

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Re: Monthly Payment

Postby Guest » Thu Apr 06, 2017 3:48 pm

I will attempt:

M = 2700 / [1 - (1.1386)^ -36 / .1386]

M = 2700 / 1 - (106.9947480 / .1386]

M = 2700 / -105994748 / .1386

M = 2700 / -764.7528

M = -1935.2472

I don't know.

Guest
 

Re: Monthly Payment

Postby Math Tutor » Fri Apr 07, 2017 3:26 am

(1.1386)^ -36 = 0.00934625 : 0.1386 = 0.06743326


1 - 0.06743326 = 0.93256674

There is something wrong the way formula is written

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Re: Monthly Payment

Postby Math Tutor » Fri Apr 07, 2017 4:37 am


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Re: Monthly Payment

Postby Guest » Fri Apr 07, 2017 12:40 pm

I don't know how to use.

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