Is there a way to distinguish between which formula to use for a financial problem that asks you to find the regular payment? The future value of an annuity or present value formula?
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WHAT are you trying to calculate: a loan payment?
Compound interest formula is usually the best place to start $\displaystyle A_t = A_0\left(1+\frac{x}{n}\right)^{nt}$ Where: A_t = Amount at time tA_0 = Inital amountx = annual interest raten = compound periodt = time
Originally Posted by Wilmer WHAT are you trying to calculate: a loan payment? so if i were calculating loan payments i should use the present value formula? thanks guys for the quick responds
Originally Posted by Hellooo so if i were calculating loan payments i should use the present value formula? Noooooo...when calculating loan payments, use the "payments formula"; use the present value formula when calculating present values!
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