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Mathematics, 27.02.2020 18:32 Niyah3406
Describe the effect an increase in n, the number of payment periods, has on the monthly payment P in the formula
P= Py: -
1-(1+i)
a. An increase in n, the number of payment periods, will not change P, the monthly payment.
b. An increase in n, the number of payment periods, will create an increase in P, the monthly
payment.
C. An increase in n, the number of payment periods, will create a decrease in P, the monthly
payment
d. An increase in n, the number of payment periods, can increase or decrease P, the monthly
payment, depending on the value of PV.
Please select the best answer from the choices provided
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Answers: 2
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