Question

If you owe $10,000 and the APR is 14 percent, what monthly payment would you need to make to reduce your debt to zero within two years? (Round answer to 2 decimal places, e.g. 52.75.)

Answer 1

Loan Amount	10000
Interest rate per period	0.016667	=14%/12
Number of periods	24
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
EMI= Equal Monthly Payment
P= Loan Amount
R= Interest rate per period
N= Number of periods
= [ $10000x0.017 x (1+0.017)^24]/[(1+0.017)^24 -1]
= [ $166.6666( 1.017 )^24] / [(1.017 )^24 -1
=$508.96