Question

Solve the following problem. PV=$24,122; n = 70; i = 0.024; PMT ?; PMT = $ (Round to two decimal places.)

Answer 1

Answer:

The payment per period is $714.82.

Step-by-step explanation:

Given information: PV=$24,122; n = 70; i = 0.024

The formula for payment per period is

$PMT=\frac{PV\times i}{1-(1+i)^{-n}}$

Substitute PV=$24,122; n = 70; i = 0.024 in the above formula.

$PMT=\frac{24122\times 0.024}{1-(1+0.024)^{-70}}$

$PMT=\frac{578.928}{0.80989084337}$

$PMT=714.822256282$

$PMT\approx 714.82$

Therefore the payment per period is $714.82.