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Prob. 1 Bill has taken out an amortized loan for $20,000 to buy a boat. The...

Prob. 1 Bill has taken out an amortized loan for $20,000 to buy a boat. The loan has an annual interest rate of 16%, which is compounded monthly, and he will be paying it with monthly payments over eight years. What is his monthly payment?

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Answer #1

So bill need to pay $71324.68 for 8 years ( 96 month)

So, in 1 month he need to pay 71324.68/96 which is approximately $ 742.965

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