Question
A loan is repaid at the rate of $200 per week for 15 years. if the interest rate is 6.65% per annum.Calculate the the total amount repaid
Answers
Reiny
i = weekly rate = .0665/52 = .001278846
n = number of payments = 52(15) = 780
Amount repaid = present value of loan
= 200( 1 - 1.001278846^-780)/.001278846
= appr $98,677.00
n = number of payments = 52(15) = 780
Amount repaid = present value of loan
= 200( 1 - 1.001278846^-780)/.001278846
= appr $98,677.00
Sandra
Why is it present value