P(1+12) Calculate P1 Calculate = =. Let R = A В' and call this number A. (Round to two decimal places as needed.) (1/2)^ and call this number B. 12 (Round to two decimal places as needed.)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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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.
Rate
Time
Amount
$160,000
8%
15 years
n
r
a. Calculate P 1 +
P ( ₁ + 7/27) "
and call this number A.
12
A =
(Round to two decimal places as needed.)
n
- 1
12
b. Calculate
and call this number B.
r
12
B=
(Round to two decimal places as needed.)
A
R=Â
c. Let R = -
B
The monthly payment necessary to pay off the loan is R=$
(Round up to the nearest cent.)
1+
Transcribed Image Text: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. Rate Time Amount $160,000 8% 15 years n r a. Calculate P 1 + P ( ₁ + 7/27) " and call this number A. 12 A = (Round to two decimal places as needed.) n - 1 12 b. Calculate and call this number B. r 12 B= (Round to two decimal places as needed.) A R=Â c. Let R = - B The monthly payment necessary to pay off the loan is R=$ (Round up to the nearest cent.) 1+
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