SOLUTION: if you were borrow $8300 over five years at .12 compounded monthly, what would be your monthly payment?

Question 1053646: if you were borrow $8300 over five years at .12 compounded monthly, what would be your monthly payment?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
The formula is monthly payment= rPV divided by (1-(1+r)^(-n)), where r is the monthly (here) rate PV the loan amount, and n the number of compounding periods.
P=(.12/12)(8300)/(1-(1+0.01)^(-60))
P=83/(1-0.550)
P=83/0.4496.
Without rounding until the end, the payment is $184.63
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