I just got some help with a math question I just asked but I have one last question
Looking at the question, the obvious missing part is the twice-monthly payment.
The standard annuity formula only works if the interest period and the payment period are the same, here they are not.
So we have to convert the 4% compounded quarterly into a rate compounded twice a month
Let that rate be i
(1 + .04/4)^4 = (1+i)^24
take the 4th root
1.01 = (1+i)^6
now take the 6th root
1+i = 1.01^(1/6) = 1.0016597...
i = .0016597... (I stored in my calculator' memory)
304000 = paym(1 - 1.0016597..^-480)/.0016597..)
I get paym = 919.27 <----- twice monthly payment
take over to answer all that a, b, c, stuff
I was just wondering for this equation
304000 = paym(1 - 1.0016597..^-480)/.0016597..)
how the power -480 was found
apart from that Im so thankful for the help and it does answer my questions