SOLUTION: James borrows $9000 and amortizes the loan for 4 years at 9 percent compounded annually. What are his yearly payments?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: James borrows $9000 and amortizes the loan for 4 years at 9 percent compounded annually. What are his yearly payments?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1130383: James borrows $9000 and amortizes the loan for 4 years at 9 percent compounded annually. What are his yearly payments?
Found 3 solutions by MathLover1, Boreal, MathTherapy:
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

James borrows $9000 and amortizes the loan for 4 years at 9 percent compounded annually. What are his yearly payments?
A=P%281%2Br%2Fn%29%5E%28n%2At%29
James borrows $9000=>P=9000
the loan for 4 years=>n=4
9%=0.09 percent compounded annually=>r=0.09
A=9000%281%2B0.09%2F4%29%5E%284%2A4%29
A+=+12848.6
to find out what are his yearly payments, divide A+=+12848.6 by 4
A%2F4+=+12848.6%2F4
A%2F4+=+3212.15

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P= payment (1-(1/1+r)^n)/r
9000=payment (1-(1/1.09)^4)/.09
810=payment (0.2915) but round at the end
payment is $2778.73 annually.

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

James borrows $9000 and amortizes the loan for 4 years at 9 percent compounded annually. What are his yearly payments?
Correct answer: highlight_green%28%22%242%2C778.02%22%29