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ipn [44]3 years ago

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where a = total loan amount, r = periodic rate, n = number of payment periods

a = 500,000 ; r = 0.12 ; n = (5 x 12) = 60 months

P = $\frac{500000}{[(1+0.12)^{60} - 1] / [0.12 (1+0.12)^{60} ] }$

P = $\frac{500000}{(896.597) / (107.712)}$

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