Confused about loan repayments (1 Viewer)

[steffiduck]

The teacher basically copied out an example from maths in focus, and i'm really confused, in particular at the point where we write a general equation (she kinda just skipped a few lines).

Cambridge isn't much help either, as their examples are confusing (as usual). In particular the first question where it asks

"1.) on 21st january 2005, Lizbet borrows $501 from a bank for 4 years at an interest rate of 10% pa.she repays the loan with four equal payments of $158.05 at the end of each year

b) i) what is the value of the first instalment on 31st december 2008, having been invested for 3 years"

help is appreciated!

 

[alexvincent]

The question isn't exactly clear. 'End of year' can mean two things. End of the first year could be

20th Jan 06 ie 1 year after the contract began
or
31st Dec 05 ie the end of the calendar year in which the conract began

And honestly, I don't really know what the question is asking either.

Just some general advice. Some textbook questions might stump you. Ask your teacher about them if you don't get them. But don't get too bogged down in them. Let them go.

If there are any questions you should be concentrating on, it should be past HSC questions.