Find the Periodic Payment R Required to Amortize a Loan

question 70

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. Please round the answer to the nearest cent. ​
P = 130,000, r = 10.5, t = 25, m = 12
​

• A) R = $1,227.29
• B) R = $1,032.02
• C) R = $1,227.44
• D) R = $1,188.97
• E) R = $1,230.12

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Definitions:

Automated Business Systems

Systems that use technology to perform and manage business processes automatically, enhancing efficiency and reducing manual intervention.

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as accounts receivable or inventory details.

Manual Accounting System

An accounting system in which records are maintained by hand without the use of computer systems.

Chart of Accounts

A systematic listing of all accounts used in the general ledger of an organization, categorized by assets, liabilities, equity, revenue, and expenses.