If you had to amortise a $120,000 loan over a 10-year period into a payment stream...

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If you had to amortise a $120,000 loan over a 10-year period into a payment stream...

If you had to amortise a $120,000 loan over a 10-year period into a payment stream that looks like a uniform annuity flow taking the time value of money into account, then the value of the monthly payments at an APR of 9% on the loan must be how much? (round to the nearest whole dollar)

PLS provide an explanation :)

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Answer 1

Answer #1

rate positively ..

Put in calculator

FV		0
PV		-120000
I	9%/12	0.75%
N	10*12	120

compute PMT	$1,520

Ans =		$1,520

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Answer 2

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