## anonymous one year ago If Jose secures a \$4000 loan that he will pay back in three years with a monthly interest rate of 1%, what is his monthly payment?

1. anonymous

what is the formula that i use?

2. jim_thompson5910

$\Large M = \frac{L*i}{1-(1+i)^{-n}}$ M = monthly payment L = amount loaned out i = monthly interest rate n = number of months (convert years to months) So, M = unknown for now L = 4000 i = 0.01 (convert percent form to decimal form) n = 36 (36 months = 3 years)