series and sequence application (1 Viewer)

[Zak Ambrose]

im missing the trick for this Q.

when Justin borrows $8500 at 12% p.a over 5 years he does not have to make any repayments for the first two months. what is the amount of each monthly repayment?

 

[Timothy.Siu]

im missing the trick for this Q.

when Justin borrows $8500 at 12% p.a over 5 years he does not have to make any repayments for the first two months. what is the amount of each monthly repayment?

what trick?

 

[Aquawhite]

Just use time payments from the 2U series course... minus first 2 payments.

i.e. there are only 58 months.

 

[Zak Ambrose]

i did it for 58 months and it's incorrect.
know the Amount owing after 2 months is
A = 8500 x 1.01^2

 

[Pwnage101]

so is interest compunded annualy or monthly

 

[Aquawhite]

so is interest compunded annualy or monthly

That may be the issue.

 

[Zak Ambrose]

That may be the issue.

it may be. i have assumed it is monthly as payments are monthly.
my answer is only 0.7 or so off so that may be why. ill redo it compounded anually.

 

[Pwnage101]

yes, some of the harder ones do monthly repayments, but with annually compounding interest.

 

[Drongoski]

If I'm not mistaken:



So what is the correct answer ???


ps: It'd be helpful if you had included the correct answer; could save a few of us from embarrassing ourselves.

 

[Zak Ambrose]

If I'm not mistaken:



So what is the correct answer ???


ps: It'd be helpful if you had included the correct answer; could save a few of us from embarrassing ourselves.

yes sorry. the answer is 197.75.
thank you Drongoski.:wave: