SOLUTION: Use a calculator to evaluate the amortization formula. For the values of the variables p, r and t( respectively) assume n =12.( round to the nearest cent) $150,000; 6%; 25 yr.

Algebra ->  Finance -> SOLUTION: Use a calculator to evaluate the amortization formula. For the values of the variables p, r and t( respectively) assume n =12.( round to the nearest cent) $150,000; 6%; 25 yr.      Log On


   

Question 714644: Use a calculator to evaluate the amortization formula.
For the values of the variables p, r and t( respectively) assume n =12.( round to the nearest cent)
$150,000; 6%; 25 yr.
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
using calculator http://www.vertex42.com/ExcelArticles/amortization-calculation.html, answer is: $+17891.55

using formula:

A=P%28r%281%2Br%29%5En%2F%28%281%2Br%29%5En-1%29%29
where
A => payment Amount per period
P=150+000=> initial Principal (loan amount)
r=0.06+= >interest rate per period
n+=12=> total number of payments or periods
we have
A=150000%280.06%281%2B0.06%29%5E12%2F%28%281%2B0.06%29%5E12-1%29%29

A=150000%280.06%281.06%29%5E12%2F%28%281.06%29%5E12-1%29%29......%281.06%29%5E12=2.012196471835550329409536

A=150000%280.06%2A2.012196471835550329409536%2F%282.012196471835550329409536-1%29%29

A=150000%280.12073178831013301976457216%2F1.012196471835550329409536%29

A=150000%280.119277%29

A=17891.55