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Math Help - Solve for loan payment variables

  1. #1
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    Solve for loan payment variables

    I am trying to figure out a way to solve for the unknowns in a given payment formula.



    I would like to solve for i, P, and n. I don't know how to alter the formula to do this? Can someone help me?

    With my basic math background I have tried to isolate the variables, but I keep doing something incorrect, because my solutions never prove correct.
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  2. #2
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    Quote Originally Posted by Lobster View Post
    I am trying to figure out a way to solve for the unknowns in a given payment formula.



    I would like to solve for i, P, and n. I don't know how to alter the formula to do this? Can someone help me?

    With my basic math background I have tried to isolate the variables, but I keep doing something incorrect, because my solutions never prove correct.
    When you want to solve for i, you first multiply both sides by 1-(1+i)^{-n}

    A= \frac{Pi}{1-(1+i)^{-n}}

    you get:

    A(1-(1+i)^{-n}) = P i

    Then divide both sides by P:

    i = \frac{A(1-(1+i)^{-n})}{P}

    You apply the same method to find an expression for P and n. The expression for P is very similar to i, except that you have an "i" in the denominator instead of a "P".
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  3. #3
    MHF Contributor Calculus26's Avatar
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    See attachment
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