SOLUTION: Determine the periodic payments PMT on the given loan or mortgage. HINT [See Example 5.] (Round your answer to the nearest cent.) $90,000 borrowed at 2% for 10 years, with monthl

Question 1096539: Determine the periodic payments PMT on the given loan or mortgage. HINT [See Example 5.] (Round your answer to the nearest cent.)
$90,000 borrowed at 2% for 10 years, with monthly payments
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
present value = 90,000
number of years = 10
percentage rate per year = 2%
payments are made monthly.

number of months is 10 * 12 = 120
percentage rate per month = 2/12 = .16666667
payments are madee at the end of each month.

use a financial calculator with discrete compounding to get you answer.

one such calculator can be found here:

https://arachnoid.com/finance/

your inputs are:

present value = 90,000
future value = 0
number of time periods = 120
payment amount is left alone since this is what you are going to calculate.
interest rate per time period = .16666667
payment made at end of time period.

you then select pmt and the calculator will tell you what the monthly payment is going to be.

your monthly payment will be 828.12.

here's what the inputs and output of this calculator looks like.

$$$

if you need formulas, most of the formulas you might require can be found here.

https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes

any questions, give me a shout.

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