Monthly Payment

[Guest]

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]

Please reply. Thanks.

[Math Tutor]

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

[Guest]

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.

[Math Tutor]

(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]

Please use this tool:
https://www.math10.com/en/problem-solver/

[Guest]

I don't know how to use.

[Baltuilhe]

Good afternoon!

I know this question is old... but I would like helping to solve it

[tex]PV=PMT\cdot\left[\dfrac{1-\left(1+i\right)^{-n}}{i}\right]\\\\2\,700=PMT\cdot\left[\dfrac{1-\left(1+13,86\%\right)^{-36}}{13,86\%}\right]\\\\2\,700=PMT\cdot\left(\dfrac{1-1,1386^{-36}}{0,1386}\right)\\\\PMT=\dfrac{2\,700\cdot 0,1368}{1-1,1386^{-36}}\\\\\boxed{PMT\approx 377,75}[/tex]

I hope I have helped!

[Guest]

Thanks Baltuilhe.