SOLUTION: John takes out a 6 year loan for $9300 at 12% interest compounded monthly. Calculate his monthly payment. John's monthly payment will be $__

SOLUTION: John takes out a 6 year loan for $9300 at 12% interest compounded monthly. Calculate his monthly payment. John's monthly payment will be $___ Time Value of Money Solver Ente

Question 1195625: John takes out a 6 year loan for $9300 at 12% interest compounded monthly. Calculate his monthly payment.
John's monthly payment will be $___
Time Value of Money Solver
Enter the given values.
N: =
0
Number of Payment Periods
I:% =
0
Annual Interest Rate as a Percent
PV: =
0
Present Value
PMT: =
0
Payment
FV: =
0
Future Value
P/Y:
12
Payments per Year
C/Y:
12
Compounding Periods per Year
PMT: =
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Principal/(1+.01)^72-1/(0.01)(1.01^72). There are two divisions, so
multiply 9300*(0.01)(1.01^72) and divide by (1.01^72-1)
=9300/1.047/0.0204 but round at end
this is 9300(0.0204/1.047 by the laws of division.
=$181.82
The 0.01 is the amount of the interest per month, and the 72 are the number of months in 6 years. That is the number of compounding periods total.
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