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Difficult loan repayment Q , help please! (1 Viewer)
- Thread starter Illest
- Start date
A loan of $6000 over 5 years at 15%p.a interest, charged monthly, is paid back in 5 annual instalments. What is the amount of each installment?
any help would be appreciated
Do same way as the one I did. The parameters of the 2 questions are:
principal: 34200 vs 6000
interest rate /compounding period: 1.5% vs (100 + 15/12)12 - 100% = 16.0754... %
No of compounding periods: 60 vs 5
per period repayment M:
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Before explaining, can you please evaluate the 2nd expression and see if you get the correct answer. If not correct, no point explaining the 16.0545%.
PS
Is your HSC yr 2002 correct??
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Thank you!^{60}}{(1+1.0125^{12}+1.0125^{24}+...+1.0125^{60})}\\\\\\\\=\frac{6000(1.0125)^{60}}{\frac{1.0125^{60}-1}{1.0125^{12}-1}}\\\\\\=1835.68)
qwerty44
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- 2013
No worriesThank you!
No - you were wrong. If you evaluated my expression correctly, you'd get 1835.68, as required
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