The value of interest rate (r) is equal to 0.054.
<u>Given the following data:</u>
To determine the value of interest rate (r):
<h3>How to calculate monthly payment.</h3>
Mathematically, the monthly payment on a loan is given by this formula:
<u>Where:</u>
- P is the principal or amount borrowed.
- M is the monthly payment.
- t is the time or number of years.
- n is the number of times it's compounded.
Generally, the interest rate (r) is given as a percentage and as such should be divided by 100.
r = 0.054.
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