Asked by Gugu
a debt of R 1000th with interest at 16% compounded quarterly,is to be amortised by 20 quarterly payments over the next five years. What will the size of these payments be
Answers
Answered by
Steve
Where's the problem? Just plug your numbers into the formula, which I assume you have handy.
A = Pr(1+r)^n/((1+r)^n-1)
= 1000*0.16(1+.16/4)/((1+.16/4)^20-1)
= 139.70
A = Pr(1+r)^n/((1+r)^n-1)
= 1000*0.16(1+.16/4)/((1+.16/4)^20-1)
= 139.70
Answered by
Reiny
i = .16/4 = .04
n = 5(4) = 20
PV = payment (1 - (1+i)^-n)/i
P( 1 - 1.04^-20)/.04 = 1000
P = .04(1000)/(1 - 1.04^-20)
= 73.58
n = 5(4) = 20
PV = payment (1 - (1+i)^-n)/i
P( 1 - 1.04^-20)/.04 = 1000
P = .04(1000)/(1 - 1.04^-20)
= 73.58
Answered by
Steve
Wow - I guess I mangled that one, eh?
Answered by
Reiny
perhaps "alternative facts" are even entering the world of math, lol, strange times
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