The total interest paid on a 3 -year loan at 9 % interest compounded monthly is $1505.82 determine the monthly payment for the loan.

Number of compounding periods is

n=12months*3years=36

I assume that

The total interest=

monthly payment*number of compounding periods - the amount of the present value of an annuity ordinary

I=x*n-pv

Let monthly payment be X

I = Total interest is 1505.82

The present value of an annuity ordinary is

Pv=X [ (1 - (1+0.09/12) ^ (-36)) : (0.09/12) ]

now plug those in the formula of the total interest above

I=x*n-pv

1505.72=36X-X [ (1 - (1+0.09/12) ^ (-36)) : (0.09/12) ]

Solve for X using Google calculator to get the monthly payment which is

X=330.72

Check your answer using the interest formula

36*330.72-330.72 * ((1 - (1+0.09

:12) ^ (-12*3)) : (0.09:12))

=1,505.83