Question 1076877
The following formula is used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of c. [If the quoted rate is 6%, for example, c is .06/12 or .005].
P = L[c(1 + c)^n]/[(1 + c)^n - 1]. So:
P=1000(.04(1+.04)^20)/((1+.04)^20 -1)
P=1000(0.07358175032862888443915456319312)
P=73.58175 as the value of quarterly payments. &#9786;&#9786;&#9786;&#9786;