LGD= Loss Given Default

Problem #6 (10): Denton Finance wishes to earn 3.8% on a portfolio of loans. Assuming that Denton anticipates a 2.1% inflation rate, LGD of 40% and a 6% default rate, what would be the monthly payment amount on a $30,000, five year self-amortizing toan? V 1 happens 6% of the blue PMT =