What monthly payment (to the nearest dollar)would Dieter need to make on a $10000 loan with a nine percent interest rate compounded monthly and a three-year maturity?
A)$303
B)$318
C)$329
D)$360

Question

Quizplus · Accepted Answer

To find the monthly payment for a loan, you can use the formula for a fixed-rate loan, which is 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 the amount of the loan, and n is the total number of payments (months). For this loan, r = 0.09/12, PV = $10,000, and n = 3*12 = 36. Plugging these values into the formula gives a monthly payment of approximately $318.

What Monthly Payment (To the Nearest Dollar)would Dieter Need to Make