Well, did you get 474.21 ?
I would like some help on this question, all I really want is the formula and not for an outright answer. Thanks
The question is;
Determine the monthly repayments needed to pay a £100, 000 loan which is paid back over 25 years with an interest rate of 3% compounded annually.
EDIT: Nevermind, sorry.
Duane borrowed $3000 from his grandmother five years ago. The interest on the loan was to be 5% compounded semiannually for the first three years, and 6% compounded monty thereafter If he made a $1000 payment 2 1/2 years ago, what is the amount now owed on the loan ?
semi annually ________________________
i'm getting screwed up with the timeline
Scheduled Payments: $1300
Date of equivalent value: 9 months from now
Money can earn 5.5%
Compounding frequency: quarterly
PV = FV ( 1 + i )^-n
x = 1300 ( 1 + 0.01375 ) ^ -14
x = 1073.7698
x = 1073.77
1073.77 = x ( 1 + 0.01375 ) ^ -14 < i'm stuck here because i'm unsure if i am suppose to square root it to the 1/14
Also, please post the ORIGINAL problem clearly and IN FULL; what you posted is somewhat unclear.
I'm assuming exactly $1,300 is due in 9 months (why is paymentS plural)?
And I'm assuming you're after the Present Value of this.
WHERE oh WHERE does your "-14" come from?
There are 3 quarterly periods in 9 months: a quarter means 3 months.
So keep it simple:
PV = FV / (1 + i)^n : this is the standard formula; FV(1 + i)^(-n) is same thing
PV = 1300 / (1 + .055/4)^3
PV = 1300 / 1.01375^3
PV = 1247.8165....