Question
Asked Oct 16, 2019
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Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.)

P = 60,000, r = 3, t = 15, m = 12
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Expert Answer

Step 1

From the given information it is needed to calculate the periodic payment to amortize a loan.

The given information is:

Principal (P) = 60000

Rate(r) = 3%=0.03

Time (t) = 15 years

m=12

n=15×12=180

Step 2

Use the below mention formula to calculate the desired result:

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г(1+г)" А- Р. (1+r)"-

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Step 3

Now, put the values in t...

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r(1+r)" 180 -A 60000(0.03)(1+0.03) (1+0.03)- A P (1+r)"- 180 180 (0.03)(1.03) A 60000 (1.03) -1 A 60000(0.03)204..503 203.503 A 60000 (0.03014) A 1808.845 A 1808.85

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Advanced Math