Question

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?

Answer 1

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

=>

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

=>n = 42 payments