Blazerkidd
New Member
- Joined
- Feb 4, 2012
- Messages
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- Male
- HSC
- 2011
Couple of these Q's below I've been stuck on for some time :S... financial maths is so hard! I think this stuff is related to annuities/loan repayments - textbook btw is 'Insight' by John Ley/Michael Fuller
1. Calculate the effective interest rate for this loan using simple interest: $550 over 2 years at 13% p.a. flat interest with repayments 6 monthly
2. Calculate the effective interest rate for this loan using simple interest: $3000 over 4 years at 17% p.a. flat interest with repayments monthly
3. Paul and Pat take out a loan of $90000 over 20 years at 8.25% p.a. interest compounding monthly. Their repayment is $767 per month. After 3 years of repaying the loan Paul wins $20000. They pay this amount off their loan.
a. How long will it take to repay the loan?
b. Calculate the total amount that would have been paid without the lump sum
c. How much is saved by making the lump sum payment?
(a, b and c are with Q3)
If anybody could solve these with worked solutions using Gen Maths methods, would be greatly appreciated
1. Calculate the effective interest rate for this loan using simple interest: $550 over 2 years at 13% p.a. flat interest with repayments 6 monthly
2. Calculate the effective interest rate for this loan using simple interest: $3000 over 4 years at 17% p.a. flat interest with repayments monthly
3. Paul and Pat take out a loan of $90000 over 20 years at 8.25% p.a. interest compounding monthly. Their repayment is $767 per month. After 3 years of repaying the loan Paul wins $20000. They pay this amount off their loan.
a. How long will it take to repay the loan?
b. Calculate the total amount that would have been paid without the lump sum
c. How much is saved by making the lump sum payment?
(a, b and c are with Q3)
If anybody could solve these with worked solutions using Gen Maths methods, would be greatly appreciated