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How to calculate monthly payment of a loan
The difference is how you interpret "8% compounded annually" In reality, loan rates are quoted as "annual", meaning the actual monthly interest rate is n/12 (r/n in your formula). ...
2
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How to calculate monthly payment of a loan
As D Stanley comments, the problem is with the rate.
"8% compounded annually" is a 'nominal' rate, as identified by the statement of a compounding period.
A 'nominal rate compounded annually'...
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