PLEASE HELP! A real estate company borrowed $276,000 to develop some condos. It amortized the loan to pay monthly for 4 years at 7% interest. Find the amount of each monthly payment.

Question

anonymous · Answer

@jim_thompson5910

jim_thompson5910 · Answer

You'll use the formula

$$\Large P = \frac{i*L}{1-(1+i)^{-n}}$$

P = monthly payment
i = rate per period
L = amount loaned out
n = number of periods

jim_thompson5910 · Answer

P is unknown and that's what we want to find out
i = 0.07/12 = 0.0058333 approximately
L = 276,000
n = 4*12 = 48 months

jim_thompson5910 · Answer

plug those values into the formula and evaluate

anonymous · Answer

ok im doing it now

anonymous · Answer

wouldnt it be -48

anonymous · Answer

i got the answer thank you so much

jim_thompson5910 · Answer

no it's not -48

jim_thompson5910 · Answer

oh did you mean -n is equal to -48 ?

anonymous · Answer

yes