Originally Posted by
joshuaa Is there a way to find the values of x?
1276.76 = (40/x)(1 - [ 1 / (1 + x)^60 ]) + 1000/(1 + x)^60
x cannot be solved directly: numeric method required.
For above, you'll find that x = .03,
which means 3% PER MONTH.
Represents the amount required to be invested
at 36% APR compounded monthly, such that
40 per month can be withdrawn, leaving 1000
at end of 60th month.
Looks like this:
Code:
MONTH PAYMENT INTEREST BALANCE
0 1276.76
1 -40.00 38.30 1275.05
2 -40.00 38.26 1273.31
....
59 -40.00 30.57 1009.71
60 -40.00 30.29 1000.00