This is used to calculate the payment amounts on a loan.

Loan payment formula:

PMT$=($P x $($ APR$/$n$))/[1-(1+$APR$/$n$)^((-$nY$))]$

Use the loan payment formula to find each missing value. Round each monetary answer to the nearest cent if needed. Show your work!

$1.$ P $=$ $$22,500,$ APR $=5\mathrm{.}4\%,$ n $=12,$ Y $=8$ yr$.$

$2.$ PMT $=$ $$300,$ APR $=5\mathrm{.}8\%,$ n $=12,$ Y $=8$ yr$.$

Practice Problems

$3.$ P $=$ $$350,000,$ APR $=7\mathrm{.}8\%,$ n $=12,$ Y $=30$ yr$.$

$4.$ P $=$ $$45,000,$ APR $=3\mathrm{.}9\%,$ n $=12,$ Y $=5$ yr$.$

$5.$ PMT $=$ $$750,$ APR $=7\mathrm{.}9\%,$ n $=12,$ Y $=30$ yr$.$

$6.$ PMT $=$ $$180,$ APR $=21\%,$ n $=12,$ Y $=4$ yr$.$

$7.$ For a loan of $$24,000$ at a fixed APR of $8\%$ for $15$ years, find the monthly payment.

$8.$ You can afford a monthly payment of $$375$ for a new car loan. You want the loan to last for $5$ years so that you can take advantage of a $1\mathrm{.}9\%$ APR offer. What price can you afford for a new car?