A loan of R90 000, 00 is taken out and repaid by equal monthly instalments over a 3 year period. Interest is set at 7, 5% p.a. compounded monthly. Calculate the monthly repayment.

Question

anonymous · Answer

right you take the amount divide by how many months there is in 3 years than take that amoutn and ficure out what 7.5% is of that ad that to the monthly payment and you will get the monthly with interest

anonymous · Answer

so you have the formula for payment? it is rather long and complicated

anonymous · Answer

I don't have the formula

anonymous · Answer

i will write out the one i know

anonymous · Answer

$$90000000\div36=250000$$
$$250000*0.75=187500$$
$$250000-187500= 62500$$
$$250000=62500=312500$$

anonymous · Answer

$$pmt=\frac{90,000,00\times \frac{.075}{12}}{1-(1+\frac{.075}{12})^{-{36}}}$$

anonymous · Answer

that would be the monthy payment at 7.5% intereste over 3 years

anonymous · Answer

@dazhiki, it's 90 000 Not 9 000 000...Sorry for the two zeros after the comer. They are zero cents

anonymous · Answer

ok then it is clear how to adjust right?

anonymous · Answer

$$pmt=\frac{90,000\times \frac{.075}{12}}{1-(1+\frac{.075}{12})^{-{36}}}$$

anonymous · Answer

the monthly payment is 31339.89

anonymous · Answer

@satellite73, do you have a general formula for that expresion?