What would be the monthly payment on a $10 000 loan with a nine percent interest compounded monthly and a three year maturity?

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula for an amortizing loan: P = [r*PV] / [1 - (1 + r)^-n], where r is the monthly interest rate (0.09/12), PV is the loan amount ($10,000), and n is the total number of payments (36). This calculation results in approximately $318.

What Would Be the Monthly Payment on a $10 000