The Formula for Finding the Monthly Payment for an Amortized $M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$

Short Answer

The formula for finding the monthly payment for an amortized loan is: $M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$ , where $M$ is the monthly payment, $R$ is the interest rate PER MONTH, and $\mathrm { N }$ is the number of months. Find the monthly payment on a car loan of $\$ 20,000$ at $12 \%$ for 5 years.