Solve.
-Calculate the monthly payment for a loan of $13,000 at a fixed APR of 7% over a period of 3 years.

Question

Quizplus · Accepted Answer

To calculate the monthly payment for a loan, you can use the loan payment formula: P = [r*PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate (annual rate divided by 12), PV is the present value or principal amount of the loan, and n is the total number of payments (months). For a $13,000 loan at 7% APR for 3 years: r = 0.07/12, PV = $13,000, n = 3*12 = 36. Plugging these values into the formula gives a monthly payment of approximately $401.40.

Solve. -Calculate the Monthly Payment for a Loan of $13,000 at at a Fixed