Post a New Question

Math for Professionals

posted by .

You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best interest rate of 9% interest that compounds monthly for 7 years.
What formula do I use to solve this problem.

  • Math for Professionals -

    What does "solving the problem" entail ?
    Are you finding the monthly payment to pay back the loan ?
    If so, then ...

    payment [1 - (1+i)^-n]/i = present value
    in your case,
    i = .09/12 = .0075, n = 84 and PV = 50000
    payment [ 1 - 1.0075^-84}/.0075 = 50000
    payment = 804.45

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question