# Thread: Can soneone help me solve for n for a finace question? Thank you

1. ## Can soneone help me solve for n for a finace question? Thank you

Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem.

PV=12000
i-=0.01
PMT=300
n=???

2. ## Re: Can soneone help me solve for n for a finace question? Thank you

Please post the complete problem. As it is there is not enough information, as you have not told us how many times the interest compounds in a year.

Am I correct in assuming that "i" is the annual interest rate?

3. ## Re: Can soneone help me solve for n for a finace question? Thank you

Hi. Thank you for replying. That is the full question. You are correct i=interest rate and n is number of payment.

4. ## Re: Can soneone help me solve for n for a finace question? Thank you

Well then it can not be solved. You need to know how many times the interest compounds in a year, so that you can calculate the necessary interest rate and the number of times the interest compounds in total.

5. ## Re: Can soneone help me solve for n for a finace question? Thank you

If we "assume" monthly payments, and rate is 1% monthly:
a = 12000
i = .01
p = 300
n = ?

p = a*i / (1 - v^n) where v = 1 / (1 + i)^n

Solve for n.