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 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
4 answers
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
Wow - I guess I mangled that one, eh?
perhaps "alternative facts" are even entering the world of math, lol, strange times
1 answer