# Monthly Payment

Algebra

### Monthly Payment

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

Guest

### Re: Monthly Payment

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

Math Tutor

Posts: 385
Joined: Sun Oct 09, 2005 11:37 am
Reputation: 13

### Re: Monthly Payment

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

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

1 - 0.06743326 = 0.93256674

There is something wrong the way formula is written

Math Tutor

Posts: 385
Joined: Sun Oct 09, 2005 11:37 am
Reputation: 13

### Re: Monthly Payment

Math Tutor

Posts: 385
Joined: Sun Oct 09, 2005 11:37 am
Reputation: 13

### Re: Monthly Payment

I don't know how to use.

Guest