Yahoo Answers: Answers and Comments for Question about math? [Mathematics]
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From abby
enAU
Tue, 17 Sep 2019 03:32:30 +0000
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Yahoo Answers: Answers and Comments for Question about math? [Mathematics]
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https://au.answers.yahoo.com/question/index?qid=20190917033230AA2c6MQ
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From llaffer: Presuming monthly interest, this is the loan p...
https://au.answers.yahoo.com/question/index?qid=20190917033230AA2c6MQ
https://au.answers.yahoo.com/question/index?qid=20190917033230AA2c6MQ
Tue, 17 Sep 2019 03:39:22 +0000
Presuming monthly interest, this is the loan payment equation:
P = r(PV) / [1  (1 + r)^(n)]
Where:
P = monthly payment
PV = Present Value (or principal)
r = rate per period
n = number of periods
If 9% is the annual rate, then the rate per period is 9/12 % or 0.75 % (or 0.0075)
There are 36 periods.
The PV is $400.
If we substitute this info into what we have, here's what is left:
P = 0.0075(400) / [1  (1 + 0.0075)^(36)]
I'll continue to use decimal approximations rounded to 78 digits but will attempt to keep the number asis in the calculator to reduce errors due to rounding. Simplifying this we get:
P = 0.0075(400) / [1  (1.0075)^(36)]
P = 3 / (1  0.764149)
P = 3 / 0.2358510
P = $12.72 (rounded to the nearest penny)