Find the Periodic Payment R Required to Amortize a Loan

question 27

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 = 60,000, r = 10.5, t = 29, m = 10
​

• A) R = $538.48
• B) R = $304.53
• C) R = $662.01
• D) R = $604.66

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Definitions:

Operating Expenses

Operating expenses are the costs associated with running a business’s core activities on a day-to-day basis, excluding the cost of goods sold.

Sales Revenue

The total amount earned by a company from its sales of goods or services, before any deductions for returned goods and allowances.

Gross Profit Rate

A financial ratio that compares gross profit to net sales, indicating the efficiency of production and pricing.

Operating Expenses

Expenses incurred from normal business operations such as manufacturing costs, marketing fees, and office supplies.