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Math Help - Superannuation and Loan Repayment Questions Part Two

  1. #1
    Junior Member
    Joined
    Nov 2009
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    Superannuation and Loan Repayment Questions Part Two

    A man invests $140 per month in a superannuation fund. If the interest is paid at 10% p.a, what will his investment be worth after 40 years?

    Kathy borrows $5000 from a Credit Union to buy a violin. The interest rate is initially 16.2% p.a calculated monthly. After 2 years the rate changes to 17.1% p.a. If the loan is to be paid off in 4 years, find her original repayment and the increase in her repayment for the 3rd and 4th year.


    I am having trouble with these two questions, thank you so much for any help given.
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  2. #2
    Newbie
    Joined
    Aug 2008
    Posts
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    Hi, Try this for Question (2)
    Code:
    Row No  Column(A)                                           Column(B)         Column(C)         Column(D)  Column(E) 
    1.      Capital Borrowed for 48 mths @ 16.2%                Rate +1           Mth Rate +1       Term       Term+1    
    2.      5000                                                1.162             1.01259048934984  48         49        
    3.      Repayment 48Mths =                                                                                           
    4.      =+(A2*((C2^E2)-(C2^D2)))/((C2^D2)-1)                139.429114672957                                         
    5.                                                                                                                   
    6.      Capital left @ 24Mths =                                                                                      
    7.      =+((A2*((C2^25)-(C2^24)))-(F1*((C2^24)-1)))/(C2-1)  2872.56131703764                                         
    8.                                                                                                                   
    9.      Rem' Cap invested for 24 Mths @ 17.1%               1.171             1.01324174595559  24         25        
    10.     2872.56131703772                                                                                             
    11.     Mthly Repayment For last 2 Years                                                                             
    12.     =+(A10*((C9^E9)-(C9^D9)))/((C9^D9)-1)               140.498735555352
    Regards Mick
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