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The payment is $19.33.
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2. Principal: is the amount borrowed.
3. Interest Rate%: is the interest added to principal at the end of each period. (Not annualized.)
4. Periods: is the number of periods. Interest is added and payments are made at the end of each period.
5. Payment calculations become unreliable when the interest rate drops below some trivial value
(of say .01%/year) and break down completely at zero interest rate. In this case use another method.
6. User input can be any constant statement using only numerics and +, -, *, and /. For example 6/12
could be entered to convert an annualized 6% rate into a monthly rate.
Example: You have borrowed $1000 at 6% annualized for 5 years.
How much are the monthly payments?
Principal = 1000; Interest Rate% = 6/12 (Converts 6% annualized rate to monthly. (.5%))
Periods = 5*12 (60 monthly periods in 5 years)