Mathematics of Finance changing rates and payments [closed]
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Anyone can help with this question? I found out the amount that wouls have to be paid at the 7% interest rate and then subtracted it from the 25000 and worked out the new payment but its not correct(https://i.stack.imgur.com/gb8tJ.jpg)
finance
asked Dec 2 '18 at 11:14
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closed as off-topic by amWhy, user416281, José Carlos Santos, Did, Ali Caglayan Dec 2 '18 at 20:17
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$begingroup$
Anyone can help with this question? I found out the amount that wouls have to be paid at the 7% interest rate and then subtracted it from the 25000 and worked out the new payment but its not correct(https://i.stack.imgur.com/gb8tJ.jpg)
finance
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
$endgroup$
closed as off-topic by amWhy, user416281, José Carlos Santos, Did, Ali Caglayan Dec 2 '18 at 20:17
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "This question is missing context or other details: Please improve the question by providing additional context, which ideally includes your thoughts on the problem and any attempts you have made to solve it. This information helps others identify where you have difficulties and helps them write answers appropriate to your experience level." – amWhy, Yanko, José Carlos Santos, Did, Ali Caglayan
If this question can be reworded to fit the rules in the help center, please edit the question.
add a comment |
$begingroup$
Anyone can help with this question? I found out the amount that wouls have to be paid at the 7% interest rate and then subtracted it from the 25000 and worked out the new payment but its not correct(https://i.stack.imgur.com/gb8tJ.jpg)
finance
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
$endgroup$
Anyone can help with this question? I found out the amount that wouls have to be paid at the 7% interest rate and then subtracted it from the 25000 and worked out the new payment but its not correct(https://i.stack.imgur.com/gb8tJ.jpg)
finance
finance
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
asked Dec 2 '18 at 11:14
Ocean Of StyleOcean Of Style
111
111
closed as off-topic by amWhy, user416281, José Carlos Santos, Did, Ali Caglayan Dec 2 '18 at 20:17
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "This question is missing context or other details: Please improve the question by providing additional context, which ideally includes your thoughts on the problem and any attempts you have made to solve it. This information helps others identify where you have difficulties and helps them write answers appropriate to your experience level." – amWhy, Yanko, José Carlos Santos, Did, Ali Caglayan
If this question can be reworded to fit the rules in the help center, please edit the question.
closed as off-topic by amWhy, user416281, José Carlos Santos, Did, Ali Caglayan Dec 2 '18 at 20:17
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "This question is missing context or other details: Please improve the question by providing additional context, which ideally includes your thoughts on the problem and any attempts you have made to solve it. This information helps others identify where you have difficulties and helps them write answers appropriate to your experience level." – amWhy, Yanko, José Carlos Santos, Did, Ali Caglayan
If this question can be reworded to fit the rules in the help center, please edit the question.
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1 Answer
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The regular payments from the future value $25000$ of the sinking fund are:
$$Rcdot frac{(1+0.06)^{10}-1}{0.06}=25000 Rightarrow R=1896.7.$$
After $6$ years the fund will be:
$$1896.7cdot frac{(1+0.06)^6-1}{0.06}=13230.09.$$
The regular payments for the remaining $4$ years are:
$$13230.09cdot (1+0.07)^4+Rcdot frac{(1+0.07)^4-1}{0.07}=25000 Rightarrow R=1724.81.$$
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
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1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
$begingroup$
The regular payments from the future value $25000$ of the sinking fund are:
$$Rcdot frac{(1+0.06)^{10}-1}{0.06}=25000 Rightarrow R=1896.7.$$
After $6$ years the fund will be:
$$1896.7cdot frac{(1+0.06)^6-1}{0.06}=13230.09.$$
The regular payments for the remaining $4$ years are:
$$13230.09cdot (1+0.07)^4+Rcdot frac{(1+0.07)^4-1}{0.07}=25000 Rightarrow R=1724.81.$$
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
$endgroup$
add a comment |
$begingroup$
The regular payments from the future value $25000$ of the sinking fund are:
$$Rcdot frac{(1+0.06)^{10}-1}{0.06}=25000 Rightarrow R=1896.7.$$
After $6$ years the fund will be:
$$1896.7cdot frac{(1+0.06)^6-1}{0.06}=13230.09.$$
The regular payments for the remaining $4$ years are:
$$13230.09cdot (1+0.07)^4+Rcdot frac{(1+0.07)^4-1}{0.07}=25000 Rightarrow R=1724.81.$$
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
$endgroup$
add a comment |
$begingroup$
The regular payments from the future value $25000$ of the sinking fund are:
$$Rcdot frac{(1+0.06)^{10}-1}{0.06}=25000 Rightarrow R=1896.7.$$
After $6$ years the fund will be:
$$1896.7cdot frac{(1+0.06)^6-1}{0.06}=13230.09.$$
The regular payments for the remaining $4$ years are:
$$13230.09cdot (1+0.07)^4+Rcdot frac{(1+0.07)^4-1}{0.07}=25000 Rightarrow R=1724.81.$$
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
$endgroup$
The regular payments from the future value $25000$ of the sinking fund are:
$$Rcdot frac{(1+0.06)^{10}-1}{0.06}=25000 Rightarrow R=1896.7.$$
After $6$ years the fund will be:
$$1896.7cdot frac{(1+0.06)^6-1}{0.06}=13230.09.$$
The regular payments for the remaining $4$ years are:
$$13230.09cdot (1+0.07)^4+Rcdot frac{(1+0.07)^4-1}{0.07}=25000 Rightarrow R=1724.81.$$
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
answered Dec 2 '18 at 13:06
farruhotafarruhota
20.3k2739
20.3k2739
add a comment |
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