I have a math problem that I cannot do, I have spent the past 3 hours on it and got relatively no where!!
The question: A mortgage is taken out for £80000. It is to be paid by annual instalments of £5000 with the first payment being made at the end of the first year that the mortgage was taken out. Interest of 4% is then charged on any outstanding debt. Find the total time taken to pay off the mortgage.
HINT: Find an expression for the debt remaining after n years and solve using the fact that if it is paid off, the debt = 0.
What I started with: debt left = (80000 - 5000n)*1.04 - does not work
What I got up to was: After nth year debt left was = 1.04*(n-1 value - 5000)
Didn't not get anywhere with that either.