asked 216k views
5 votes
If you can obtain bank financing at 6.81% APR (monthly compounding), what would be the implied monthly loan payments?

asked
User Papirrin
by
7.6k points

1 Answer

5 votes

Answer:

Question is not complete so let us assume the following to complete it

Loan Amount = $ 100,000

Loan term = 2 years.

Solution:

This problem requires us to calculate the monthly loan payment. Monthly compounding rate is given in problem. So we can easily calculate monthly loan payment using formula given below.

Loan PV = Installment (A.F)

So putting values in fomula

100,000 = Installment ((1-(1+6.81/12)^-24)/6.81/12))

Installment = 100,000/22.38

Installment = $ 4,468 (monthly loan payments)

answered
User Raul Guiu
by
8.9k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.