Find the Periodic Payment R Required to Amortize a Loan

question 74

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 = 3,000, r = 5, t = 3, m = 4
​

• A) R = $270.77
• B) R = $263.29
• C) R = $213.42
• D) R = $294.30

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Definitions:

Current Stock Price

The most recent price at which a stock was traded on a public exchange.

Required Return

The minimum rate of return on an investment deemed acceptable to an investor, considering its risk level.

Dividends

Disbursements issued by a company to its stockholders, usually originating from the firm's earnings.

Price of The Stock

The current market value at which a single share of a company's stock can be bought or sold.