2215.1( 1 - (1+i)^-72)/i = 135000
very nasty equation to solve, since there is no "formula" way to do this
Wolfram is our saviour.
(notice I changed the i to x)
the reasonable answer is i = .00470829 for the monthly rate
so annual rate = 12(.0047...) = .056499..
or appr 5.65% per annum compounded monthly
check:
2215.10( 1 - 1.00470829^-72)/.00470829
= 134999.9987
how about that ????, not bad eh?
You have borrowed $135,000 from the bank today. You are required to repay this money over the next six years by making monthly payments of $2,215.10 at the end of each month. What is the quoted interest rate for the loan (with monthly compounding)?
Please show me the steps on how to solve this
1 answer