The amount of each payment to 2 decimal places = $90406.80
Explanation:
t = 18 year
Principal = P = $18,000
r = 9% 0.09
Using compound interest formula:
[tex]FV\text{ = P(1 + }\frac{r}{n})^{nt}[/tex]n = number of times it was compounded in a year.
since it is monthly, n = 12
[tex]\begin{gathered} FV\text{ =future value} \\ FV\text{ = 18000(1+ }\frac{0.09}{12})^{12\times18} \end{gathered}[/tex][tex]\begin{gathered} FV=18000(1+0.0075)^{216} \\ FV\text{ = }18000(1.0075)^{216} \\ FV\text{ = 18000}\times5.0226 \\ FV\text{ = 90406.8} \end{gathered}[/tex]The amount of each payment to 2 decimal places = $90406.80
