SOLUTION: can someone please help me with this: Find the payment necessary to amortize the loan. $12,100; 12% compounded monthly; 48 monthly payments $313,57 $318,64 $1458,32 $318.

Algebra ->  Finance -> SOLUTION: can someone please help me with this: Find the payment necessary to amortize the loan. $12,100; 12% compounded monthly; 48 monthly payments $313,57 $318,64 $1458,32 $318.      Log On


   

Question 168531: can someone please help me with this:
Find the payment necessary to amortize the loan.
$12,100; 12% compounded monthly; 48 monthly payments
$313,57
$318,64
$1458,32
$318.87
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!
Okay, we have Amortization formula: P=A%281-%281%2B%28i%2Fm%29%29%5E%28-nm%29%29%2Fi ------------> EQN 1
Given---->system%28P=Principal%2CA=Amortization%2Ci=interest%2Cn=years%2Cm=compundedPeryear%29
Subst.
12100=A%281-%281%2B%280.12%2F12%29%29%5E%28-4%2A12%29%29%2F%280.12%2F12%29
12100=A%281-%281.01%29%5E-48%29%2F0.01, cross multiply
12100%2A0.01=A%281-0.62026%29
121=A%280.379739%29 ----> cross%28121%29318.64%2Fcross%280.379739%29=A%2Across%280.379739%29%2Fcross%280.379739%29
highlight%28A=318.64%29, Answer
.
thank you,
Jojo