Question 987404
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The periodic payment, *[tex \Large PMT], on a fully amortized loan with an original principal amount of *[tex \Large P], at an annual interest rate of *[tex \Large r] expressed as a decimal, where the number of payments per year is *[tex \Large n], for a term of *[tex \Large t] years is:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ PMT\ =\ P\left(\frac{\frac{r}{n}\left(1\ +\ \frac{r}{n}\right)^{nt}}{\left(1\ +\ \frac{r}{n}\right)^{nt}\ -\ 1}\right)]


Get out your calculator and get to work.  Remember to reduce the purchase price by the down payment amount in order to find the original principal of the loan. Once you have the PMT amount, multiply by the total number of payments, which is the product of the number of payments per year and the number of years.  That will give you total amount repaid.  From this amount, subtract the original principal amount to determine the total interest paid.


John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it

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