Rainy day Application of Series question! (1 Viewer)

[cheeki chiki]

Help Please!
A loan of $6000 over 5 years at 15%p.a. interest, charged monthly, is paid back in 5 yearly instalments. How much is each instalment, and how much money is paid altogether?

Thanks.

 

[wrxsti]

46.032 cents

 

[readert]

I get $142.7 for each monthly payment. Then, multiplying that figure by 60, i get $8564.4.

 

[xD LOL xD]

Help Please!
A loan of $6000 over 5 years at 15%p.a. interest, charged monthly, is paid back in 5 yearly instalments. How much is each instalment, and how much money is paid altogether?

Thanks.

I get $142.7 for each monthly payment. Then, multiplying that figure by 60, i get $8564.4.

That wouldn't be right then
What's the answer?

 

[cheeki chiki]

46.032 cents

Answers:
Yearly = $1835.68
Total = $9178.40

Any ideas??

 

[petro283]

I get $142.7 for each monthly payment. Then, multiplying that figure by 60, i get $8564.4.

Good Stuff, that's exactly what i got

Working:

Answers:
Yearly = $1835.68
Total = $9178.40

Any ideas??

Hmm. Any keen mathematicians willing to look at the working out to see where i went wrong?

 

[xD LOL xD]

Good Stuff, that's exactly what i got

Working:

Hmm. Any keen mathematicians willing to look at the working out to see where i went wrong?

I might be interpretting this wrong but isn't interest charged monthly on the loanable amount, then the loan is paid back in "5, yearly instalments?"

 

[bloomers]

wow omgod i cant believe i got it

ONE PART OF MY TRIALS I CANT FAIL YAY
(they are tomorrow)

SO.
yes, LOL i had the same thoughts as you. and i thought it couldnt be done but it CAN.

so interest rates rise EVERYMONTH but paybacks are only made at the END OF THE YEAR.
you work it out exactly the sam but on the last payment it is in the form..

6000(1.0125)^60 - M(1+ 1.0125^12 + 1.0125^24 + 1.0125^36 + 1.0125^48)

and you work it out as normal.
im awesome.
yeah.