Question

Determine the periodic payments PMT on the loan given. HINT [See Example 6.] (Round your answer to the nearest cent.)

$200,000 borrowed at 5% for 9 years, with quarterly payments

Answer 1

`\bf \qquad \qquad \textit{Amortized Loan Value} \\\\ pymt=P\left[ \cfrac{(r)/(n)}{1-\left( 1+ (r)/(n)\right)^(-nt)} \right] \\\\\\ \qquad \begin{cases} P= \begin{array}{llll} \textit{original amount}\\ \end{array}\to & \begin{array}{llll} 200000 \end{array}\\ pymt=\textit{periodic payments}\\ r=rate\to 5\%\to (5)/(100)\to &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus 4 times} \end{array}\to &4\\ t=years\to &9 \end{cases}`