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Economic formulas are available to compute annual payments

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Reference no: EM13358466

Economic formulas are available to compute annual payments for loans. Suppose that you borrow an amount of money P and agree to repay it in n annual payments at an interest rate of i. The formula to compute the annual payment A is

A = P.i(1+i)n/(1+i)n-1

Write a program to compute A. Test it with P = $55,000 and interest rate of 6.6% (i = 0.066). Compute results for n = 1, 2, 3, 4, and 5 and display the results as a table with headings and columns for n and A. Write this program steps in word file.

Reference no: EM13358466

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