113k views
0 votes
A student borrows $90,000 for business school at 9.0% stated annual interest with equal monthly payments over 9 years. Consider this as a loan with no payments or interest during school so that the problem structure is equivalent to a standard loan received one period before the first payment. How much is the monthly payment

User Udeleng
by
7.9k points

1 Answer

2 votes

Answer:

the monthly payment is $1,218.86

Step-by-step explanation:

The computation of the monthly payment is shown below;

Given that

RATE = 9% ÷ 12 = 0.75%

NPER = 9 × 12 = 108

PV = -$90,000

FV = $0

The formula is shown below;

=PMT(RATE,NPER,PV,FV,TYPE)

After applying the above formula, the monthly payment is $1,218.86

A student borrows $90,000 for business school at 9.0% stated annual interest with-example-1
User Viraj Nimbalkar
by
7.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories