Results 1 to 5 of 5

Thread: Weird loan!

  1. #1
    MHF Contributor
    Joined
    Feb 2015
    From
    Ottawa Ontario
    Posts
    2,210
    Thanks
    488

    Weird loan!

    A $1000.00 loan over a 12month period, at rate 1% per month.
    Monthly payments are p per month for 1st 4 months,
    no payments next 4 months, then p per month for last 4 months.
    Code:
    MONTH PAYMENT INTEREST BALANCE 
      0                    1000.00 
      1     -p     10.00     ? 
      2     -p       ?       ? 
      3     -p       ?       ? 
      4     -p       ?       ? 
      5     0.00     ?       ? 
      6     0.00     ?       ? 
      7     0.00     ?       ? 
      8     0.00     ?       ? 
      9     -p       ?       ? 
     10     -p       ?       ? 
     11     -p       ?       ? 
     12     -p       ?      0.00
    Calculate p.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Super Member
    Joined
    Jun 2013
    From
    Lebanon
    Posts
    952
    Thanks
    473

    Re: Weird loan!

    Weird loan!-loan.png
    Follow Math Help Forum on Facebook and Google+

  3. #3
    MHF Contributor
    Joined
    Feb 2015
    From
    Ottawa Ontario
    Posts
    2,210
    Thanks
    488

    Re: Weird loan!

    Yepper! 133.23801887...

    I equated FV's.
    What method did you use?
    Follow Math Help Forum on Facebook and Google+

  4. #4
    Super Member
    Joined
    Jun 2013
    From
    Lebanon
    Posts
    952
    Thanks
    473

    Re: Weird loan!

    I used the formula

    $\displaystyle 1000 \frac{r^{12}(r-1)}{\left(r^8+1\right)\left(r^4-1\right)} $

    where $r=1.01$
    Follow Math Help Forum on Facebook and Google+

  5. #5
    MHF Contributor
    Joined
    Feb 2015
    From
    Ottawa Ontario
    Posts
    2,210
    Thanks
    488

    Re: Weird loan!

    Nice!

    a = 1000
    i = .01

    r = 1 + i
    k = (r^4 - 1) / i

    a*r^12 = p(k*r^8) + p*k
    ar^12 = p(kr^8 + k)
    p = ar^12 / [k(r^8 + 1)]
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Need a loan
    Posted in the Business Math Forum
    Replies: 0
    Last Post: Sep 7th 2015, 08:11 AM
  2. Loan
    Posted in the Business Math Forum
    Replies: 1
    Last Post: Sep 15th 2014, 06:12 AM
  3. Loan
    Posted in the Business Math Forum
    Replies: 3
    Last Post: Feb 25th 2007, 06:13 AM

/mathhelpforum @mathhelpforum