# Loan

Apply for a $59000 loan, the loan repayment period is 8 years, the interest rate 7%. How much should I pay for every month (or every year if paid yearly). Example is for practise geometric progression and/or periodic payment for an annuity. Correct result: m = 804.39 USD y = 9880.6 USD #### Solution: $i_1 = 7/100/12 = 0.006 \ \\ r_1 = (1 + i_1)^{ 12\cdot 8 } = 1.776 \ \\ m = 59000 \cdot \dfrac{ i_1 r_1}{ r_1 -1 } = 59000 \cdot \dfrac{ 0.006 \cdot 1.776}{ 1.776 -1 } = 804.39 \ \text{USD}$ $i_2 = 7/100 = 0.07 \ \\ r_2 = (1 + i_2)^{ 8 } = 1.718 \ \\ y = 59000 \cdot \dfrac{ i_2 r_2}{ r_2 -1 } = 59000 \cdot \dfrac{ 0.07 \cdot 1.718}{ 1.718 -1 } = 9880.6 \ \text{USD}$ We would be pleased if you find an error in the word problem, spelling mistakes, or inaccuracies and send it to us. Thank you! Showing 0 comments: Tips to related online calculators Do you want to convert time units like minutes to seconds? #### You need to know the following knowledge to solve this word math problem: ## Next similar math problems: • Retirement annuity How much will it cost to purchase a two-level retirement annuity that will pay$2000 at the end of every month for the first 10 years, and $3000 per month for the next 15 years? Assume that the payment represent a rate of return to the person receiving th • Present value A bank loans a family$90,000 at 4.5% annual interest rate to purchase a house. The family agrees to pay the loan off by making monthly payments over a 15 year period. How much should the monthly payment be in order to pay off the debt in 15 years?
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