SOLUTION: Please help, Payment interval 1 month, Term 7yrs 3 months, Interest rate 8.5% compounding frequency monthly. Present Value due 16,309.78. I need to find the periodic payment. The a

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Question 548310: Please help, Payment interval 1 month, Term 7yrs 3 months, Interest rate 8.5% compounding frequency monthly. Present Value due 16,309.78. I need to find the periodic payment. The answer is 250.00. But I need help in understanding the equations. This is what I've been given PMTx((1-(1+i)-n)/i)) x (1+i)
How do I calculate PMT? These are the other numbers that I've calculated
i=.085/12=.007083333?? n=7+3/12=7.25x12=87 Help please
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
PV= 16309.78
periods 87
Interest 8.50% 0.007
(p*I(1+I)n)/((1+I)^n-1))
16309.78*0.007(1+0.007)^87)/((1+0.007)^87-1)

(16309.78*0.007*1.848)/(1.85-1)
213.49/0.85
251.77 =PMT