Find the Periodic Payment R Required to Amortize a Loan

question 83

Multiple Choice

Find the periodic payment R required to amortize a loan of P dollars over t years with interest earned at the rate of r%/year compounded m times a year. Round your answer to the nearest cent. ​
P = 80,000, r = 9, t = 12, m = 2
​

• A) R = $5,461.61
• B) R = $5,876.44
• C) R = $5,518.96
• D) R = $5,642.49

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost of labor based on standard rates and hours.

Labor Standards

Benchmarks or norms for the amount of labor time required to perform a certain task or produce a certain amount of goods.

Particular Product

A specific item or good that is produced and offered for sale by a business.

Labor Efficiency Variance

A measure used in budgeting and cost management to analyze the difference between the actual hours worked and the hours that should have been worked, according to standards, for the actual level of production.