Question

Pv= 14,551, n=105, I=0.03, pmt=?

Answer 1

Given the parameters provided, we are required to calculate the value for the periodic payment over the given period.

The formula linking all the provided parameters is given to be:

`PMT=(PV\cdot i)/(1-(1+i)^(-n))`

where

PMT = Payment

PV = Present Value

i = Rate per Period

n = Total Number of Periods

The parameters are:

`\begin{gathered} PV=14,551 \\ n=105 \\ i=0.03 \end{gathered}`

Therefore, we can calculate the PMT to be: