Part 1 a. Calculate P1+r12n and call this number A. A=enter your response here (Round to two decimal places as needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B. B=enter your response here (Round to two decimal places as needed.) Part 3 c. Let R = AB. The monthly payment necessary to pay off the loan is R=$enter your response here. (Round up to the nearest cent.)
Part 1 a. Calculate P1+r12n and call this number A. A=enter your response here (Round to two decimal places as needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B. B=enter your response here (Round to two decimal places as needed.) Part 3 c. Let R = AB. The monthly payment necessary to pay off the loan is R=$enter your response here. (Round up to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Given a loan amount P, an annual interest rate r, and the length of the loan in years, find the monthly payment R necessary to pay off the loan by completing parts a through c. Represent the number of monthly payments by n.
|
Amount
|
Rate
|
Time
|
|---|---|---|
|
$50,000
|
5%
|
20
years |
Question content area bottom
Part 1
a. Calculate
P1+r12n
and call this number A.A=enter your response here
(Round to two decimal places as needed.)Part 2
b. Calculate
1+r12n−1r12
and call this number B.B=enter your response here
(Round to two decimal places as needed.)Part 3
c. Let R =
AB.
The monthly payment necessary to pay off the loan is
R=$enter your response here.
(Round up to the nearest cent.)
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