# Math Help - Financial Problem

1. ## Financial Problem

Is there a way to distinguish between which formula to use for a financial problem that asks you to find the regular payment? The future value of an annuity or present value formula?

2. WHAT are you trying to calculate: a loan payment?

3. Compound interest formula is usually the best place to start

$A_t = A_0\left(1+\frac{x}{n}\right)^{nt}$

Where:

• A_t = Amount at time t
• A_0 = Inital amount
• x = annual interest rate
• n = compound period
• t = time

4. Originally Posted by Wilmer
WHAT are you trying to calculate: a loan payment?
so if i were calculating loan payments i should use the present value formula?

thanks guys for the quick responds

5. Originally Posted by Hellooo
so if i were calculating loan payments i should use the present value formula?
Noooooo...when calculating loan payments, use the "payments formula";
use the present value formula when calculating present values!