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What is the formula to compute the annual payment a

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Reference no: EM13259512

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)-1]

Write an M-file to compute A. Test it with P=$100,00 and an interest rate of 3.3%(i=0.033). 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.

Reference no: EM13259512

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