The following formula gives the total amount of a loan P given a monthly payment m, an annual interest r percent over a term of N months.
Which of the following would give us the monthly payment m in terms of P,r, and N?
P=(1,200r)(1+1,200r)N(1+1,200r)N−1m
Concentrating on the big picture,
P= (1,200r)(1+1,200r)N(1+1,200r)N−1m
We can do the following algebraic moves
P=BCAm
P⋅B⋅C=Am
ABCP=m
Which gets us,
m=(1+1,200r)N−1 (1,200r)(1+1,200r)NP