Collins Rose
04/22/2023 · Middle School

What is the first step when solving present or loan amortization using a formula? \( \begin{array}{ll}\text { a. decide what the monthly payment will be } & \text { c. determine the periods in the problem, which } \\ \text { b. apply the present amortization formula to } & \text { d. determine the interest rate in the problem } \\ \text { determine the balance }\end{array} \)

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The first step when solving present or loan amortization using a formula is: **c. determine the periods in the problem.** Understanding the number of periods (months, years, etc.) is crucial as it will influence the calculations for the monthly payment, interest rate, and overall loan structure.

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The first step is to determine the periods in the problem.
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