Loans:Loan payment?

What is the monthly payment on a $5,000 loan that is 18% per year, compounded weekly. Assume 52 weeks per year and that you will make 35 payments.

Answer:

Find the EAR (1+.18/52)^4 -1=.0139 so 1.39%

N=35
I%=1.39
PV=5000

so PMT = 181.39

The long hand is 5000[(.0139(1+.0139)^35)/((1+.0139)^35 -1)] which also equals 181.39

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