$45,000 is borrowed from a bank on September 1st. The repayment schedule for the loan is 72 equal monthly payments which are due on the 1st of each month. The first payment is due October 1st. Interest is 9% annually compounded monthly, what is the monthly payment amount?

$45,000 is borrowed from a bank on September 1st.  The repayment schedule for the loan is 72 equal monthly payments which are due on the 1st of each month. The first payment is due October 1st. Interest is 9% annually compounded monthly, what is the monthly payment amount?

 

 

Answer:

Now 45000 is brought for 6 years or 72 months means that the amount accumulated by the end of 6 years if amount is conpounted monthly is

45000(1+ 9/1200)^72=77065

So monthly payment is 1070 approx

Asked on February 15, 2018 in economics.
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