Math

Marcel gives Philip a business loan of $10,000 for 2 years with an annual interest rate of 9%.
What is Philip's monthly payment on the loan, rounded to 2 decimal places?

$456.85
$1030.23
$37.50
$1800.00

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  1. https://www.calculator.net/amortization-calculator.html?cloanamount=10000&cloanterm=2&cinterestrate=9&printit=0&x=61&y=17

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    Damon
  2. A = P r (1+r)^n / [ (1+r)^n -1]
    where

    A = payment Amount per period
    P = initial Principal (loan amount)
    r = interest rate per period
    n = total number of payments or periods
    here n = 24 months
    r = .09/12 = 0.0075
    (1+r) ^24 = (1.0075)^24 = 1.1964
    so
    10,000 (.0075)1.1964 / [ .1964]
    = 456.87

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    Damon

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