P = rD(1 + r)^m
(1 + r)^m - 1
Here is the question coming with that formula. A loan of $150000 (D) is to be paid off over 30 years by means of equal monthly payments (m) at a fixed annual rate of 6% (r).
a) calculate the monthly payment (P)to the nearest dollar.
Basicaly, i plug the values into the formula and get a riduclous answer of 9000 as the answer. As a monthly payment thats obviously wrong.
Any help appreciated.