Warning
Write down the values of
N = Number of installment periods If P/Y represents years, then N must be in terms of years I% = Annual Interest Rate Interest Rate given in question (dont have to do anything to it) PV = Principal If gaining money, Positive value If giving / losing money, Negative Value P/Y = Installment Periods (Number of payments to pay off the loan, not how often it compounds) If N represents years, then P/Y must represent what it would be if it where in years. even if your calculating in months. PMT = Payments each period (only matters with reducible interest) C/Y = Compound Periods how many times it compounds
Example
April takes out a $20,000 loan (she gains $20,000) , she is charged 7.99% interest, compounding daily, but payed weekly. Payed over 8 years.
I% = 7.99% PV = $20,000 P/Y = 52 C/Y = 365 N =