MATH SOLVE

6 months ago

Q:
# Pia borrowed $12 000 for tuition. If the loan was compounded quarterly and paid off in 30 months with monthly payments of $450, what was the yearly interest rate?

Accepted Solution

A:

$$12000 = \frac{450(1 - (1 + r/4)^{-30} )}{r/4}$$
Solving numerically gives
r = 0.0310953