The formula above gives the monthly payment m needed to pay off a loan of P dollars at r percent annual interest over N months. Which of the following gives P in terms of m, r, and N? The formula is m = P * [ (r/1200) * (1 + r/1200)^N ] / [ (1 + r/1200)^N - 1 ].

Question

Accepted Answer

P = m * [ ( (1 + r/1200)^N - 1 ) / ( (r/1200) * (1 + r/1200)^N ) ]

Questions

The formula above gives the monthly payment m needed to pay off a loan of P dollars at r percent annual interest over N months. Which of the following gives P in terms of m, r, and N? The formula is m = P * [ (r/1200) * (1 + r/1200)^N ] / [ (1 + r/1200)^N - 1 ].

Related questions