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Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount? Describe.
To solve for k while the known values are PVA, n, and PMT, begin with the present value of an annuity formula, Equation 8-3b, like this:
Present Value of an Annuity Formula, Table Method
PVA = PMT(PVIFA k, n)
After that, rearrange terms and solve for (PVIFA k, n) like this
PVA / PMT = (PVIFA k, n).
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