Results 1 to 2 of 2

Math Help - Geometric progression

  1. #1
    Junior Member
    Joined
    Jul 2008
    Posts
    52

    Geometric progression

    anyone can understand this question??

    a house buyer borrows rm50k from a bank to buy a house which costs rm70k. the rate of interest charged by the bank is 9% per annum, and is calculated based on the amount outstanding at the beginning of each year.the house buyer is required to repay his loan in monthly instalments for a period of 15 years. assuming that the rate of interest is fixed for the entire duration of the loan, find the amount per month he has to repay the bank

    answer given :rm516.92 . math topic :geometric progression
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Grand Panjandrum
    Joined
    Nov 2005
    From
    someplace
    Posts
    14,972
    Thanks
    4
    Quote Originally Posted by qweiop90 View Post
    anyone can understand this question??

    a house buyer borrows rm50k from a bank to buy a house which costs rm70k. the rate of interest charged by the bank is 9% per annum, and is calculated based on the amount outstanding at the beginning of each year.the house buyer is required to repay his loan in monthly instalments for a period of 15 years. assuming that the rate of interest is fixed for the entire duration of the loan, find the amount per month he has to repay the bank

    answer given :rm516.92 . math topic :geometric progression
    let the monthly repayument be x, then the amount repaid in a year is 12x.

    So if p_1 is the oustanding debt at the start of a year the outstanding debt at the start of the following year is:

    p_2=(p_1-12x) 1.09

    The next year:

     <br />
p_3=(p_2-12x) 1.09=p_1 1.09^2-12x 1.09^2-12x 1.09<br />

    Proceeding in this way the debt after 15 years is:

     <br />
p_{15}=p_1 1.09^{15} - \sum_{i=1}^{15} 12x 1.09^i=p_1 1.09^{15} - 12x \sum_{i=1}^{15} 1.09^i<br />

    CB
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Geometric progression
    Posted in the Math Topics Forum
    Replies: 3
    Last Post: April 11th 2011, 05:06 AM
  2. Geometric Progression
    Posted in the Algebra Forum
    Replies: 4
    Last Post: March 17th 2010, 04:08 AM
  3. Geometric progression
    Posted in the Pre-Calculus Forum
    Replies: 1
    Last Post: January 12th 2010, 04:22 AM
  4. Geometric Progression or Geometric Series
    Posted in the Math Topics Forum
    Replies: 8
    Last Post: October 8th 2009, 07:31 AM
  5. Replies: 8
    Last Post: March 23rd 2009, 07:26 AM

Search Tags


/mathhelpforum @mathhelpforum