P = Ai / (1  x) where x = 1 / (1 + i)^n
P = Payment (?)
A = Amount borrowed (10,000)
i = interest rate (.05)
n = number of years (24)
Yokay?
Hi, this is related to business, as its in the quantitative papers.
You are paying off a £10,000 loan in 24 yearly instalments. You are charged 5% per annum. What should your annual payment be to the nearest pound?
Is there a formula for working this out? I cant seem to find the answer. Is it possible to tell me how to work this out? and the answer as well?
Many thanks!
Hi, thanks for the reply. So its done like this:
P = Ai / (1  x) where x = 1 / (1 + i)^n
P = Payment (?)
A = Amount borrowed (10,000)
i = interest rate (.05)
n = number of years (24)
P= (10,000*.05)/(10.3100679103)=
500/0.6899320897=724.71, and round it up is £725.
Hey, thanks there!

Find out x, so 1/(1+.05)^24=1/(1.05)^24=3.225099944, then 1/3.225099944=0.3100679103. Then thats the answer for x.