Use Formula (13-1) to Calculate I If PMT = $900

Short Answer

Use formula (13-1) to calculate i if PMT = $900 and PV = $150,000. (There are several instances in our formulas where a two- or three-letter symbol is used for a variable. This is usually done to make the symbol more suggestive of the quantity it represents. For example, we use PMT to represent the amount of each payment in a series of regular payments. The symbol P has already been taken to represent another quantity that begins with "p.")