The size of the monthly repayment k that amortizes a loan of A dollars in N...

 

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The size of the monthly repayment k that amortizes a loan of A dollars in N years at an interest rate of r per year, compounded monthly, on the unpaid balance is given by k Ar 12 [1-(1+)12] The value of r can be found by performing the iteration Arn+12k (1+2) -12N - rn+1rn - = A-12Nk (1+2) -12N-1 A family secured a loan of $360,000 from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $2298 over 25 years. Find the interest rate on this loan. Round the rate to one decimal place. The size of the monthly repayment k that amortizes a loan of A dollars in N years at an interest rate of r per year, compounded monthly, on the unpaid balance is given by k Ar 12 [1-(1+)12] The value of r can be found by performing the iteration Arn+12k (1+2) -12N - rn+1rn - = A-12Nk (1+2) -12N-1 A family secured a loan of $360,000 from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $2298 over 25 years. Find the interest rate on this loan. Round the rate to one decimal place.