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

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    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=???





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  2. #2
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    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?
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    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.
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    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.
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    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.
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