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Math Help - annuities of the ends of periods

  1. #1
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    Question annuities of the ends of periods

    We pay back a loan of 50000 USD by annuities of 10000 USD at a rate of 17%.

    a) How many complete annuities will be becessary?

    b) What is the amount that will have to accompany the last complete payment?

    c)What is the amount of paid interest during the 4th year?

    d) How much capital will the 5th payment require?
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  2. #2
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    Quote Originally Posted by hebby View Post
    We pay back a loan of 50000 USD by annuities of 10000 USD at a rate of 17%.

    a) How many complete annuities will be becessary?

    b) What is the amount that will have to accompany the last complete payment?

    c)What is the amount of paid interest during the 4th year?

    d) How much capital will the 5th payment require?
    Basic Principles. Trust me on this.

    v = 1/1.17

    50000 = 10000*(v + v^2 + ... + v^n)

    That's about it.

    1) Add up the geometric series in the parentheses.
    2) Solve for n

    You tell me what to do next. 'n' will NOT be an integer.

    Note: If you use a calculator's financial function to calculate 'n', you may get an integer value that will NOT be what you want.
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  3. #3
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    I get 12 complete annuities
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  4. #4
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    WHY are you using the term "annuity"?
    Why are you not simply saying: annual payment of $10,000 ?
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  5. #5
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    im taking the course in french....but yes that sounds better+
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  6. #6
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    Quote Originally Posted by hebby View Post
    I get 12 complete annuities
    You didn't do as I directed.

    1) 12 is an integer. This is very unlikely to be a sufficient response.
    2) You don't seem to have a plan what to do next.

    3) Please tell us what langauge you are using from the beginning? Guessing why words are weird is a tough business.
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