The Formula for Finding the Monthly Payment for an Amortized $M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$

question 4

Short Answer

The formula for finding the monthly payment for an amortized loan is: $M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$ , where $M$ is the monthly payment, $R$ is the interest rate PER MONTH, and $\mathrm { N }$ is the number of months. Find the monthly payment on a car loan of $\$ 20,000$ at $12 \%$ for 5 years.

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Definitions:

Factory Machinery

Fixed assets used in the production of goods, including machines and equipment in a manufacturing facility.

Direct Material

Raw materials that are directly involved in the production process of a product and can be easily traced to it.

Steel

An alloy of iron and carbon (and possibly other elements) that is hard, strong, and used as a structural and fabrication material.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.