B- 1,200 1,200
-P
N
r
1,200
The formula above gives the monthly payment m
needed to pay off a loan of P dollars at percent
annual interest over N months. Which of the
following gives P in terms of m, r, and N ?
r
A) P-
M
1,200 1.200
N
r
-1
1,200
1
1 +
1,200
B) P-
1 +
1,200
1,200
C) P=
71
1,200