SOLUTION: what is the amount of the monthly payment if i secure a R55000 loan with a bank at 10.5%per annum compounded monthly,with a term of seven years?

Question 1155725: what is the amount of the monthly payment if i secure a R55000 loan with a bank at 10.5%per annum compounded monthly,with a term of seven years?

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
55000 loan.
interest rate = 10.5% per year compounded monthly equals (10.5/12)% per month.
7 years compounded monthly equals (7 * 12) months.
inputs to the TI-BA-II business analystl calculator are:
present value = 55000
future value = 0
interest rate equals (10.5/12)% per month.
number of months = (7 * 12) months.
payments are made at the end of each month.
results are that the monthly payments are 927.3370232 per month.
round to the nearest penny to get payments of 927.34 per month.
an online financial calulator that give you similar results can be found at https://arachnoid.com/finance/index.html
inputs are .....
present value = 55000
future value = 0
number of months = 7 years * 12 = 84
interest rate per month = 10.5% per year / 12 = .875%
payments are made at the end of each month.
results are that the payment at the end of each month is 927.23.
this calculator rounds your answer to the nearest penny automatically.
results from this calculator are shown below.
$$$

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