Question

The monthly payment of the installment loan. I understand how to put it in the installment loan formula, I’m not understanding how to calculate it. Please can someonebreak it down for me

Answer 1

$966.15 per month

Explanation:

By plugging in the principal, apr, and number of payments (36) into the formula for installment loans, we tet $966.95

5%=0.05

(0.05(1+0.05)^36/(1+0.05)^36-1)×16000