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julsineya [31]
3 years ago
9

A loan of $12,500 at 9% is to be repaid with n level payments. if in = 128.04, what is the value of n?

Mathematics
1 answer:
Lisa [10]3 years ago
6 0

present value of annuity = annual payment * [ 1 - (1+i)^-n ]/i

=>

12500 = 128.04 * [1-(1+9%/12^-n]/9%/12

=>n = 42 payments

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