Aminta_1900
New member
- Joined
- Sep 19, 2022
- Messages
- 38
On the subject of geometric sequences, I am having difficulty with the second of these two questions. The first I have answered correctly using the formula given at the beginning of the section, namely (where x is the yearly installments to be paid back, a the principle loan, r the interest rate, and n the period)
Debt owed = ar^n - x{(r^n - 1)/(r - 1)}
11) So 10,000(1.1)^n - 2,000{(1.1^n - 1)/(1.1 - 1)}
Using iteration to find n = 8 years (when the answer is < 0).
12) But in question 12 I am taking it that I have to now solve for x where n is given, but I am confused as to what the question means by "interest, calculated monthly, at 11% per annum", and so cannot discern what i should use for the period n.
I have been using n = 24 (for months) but this clearly wrong.
The answer is £23.31.
Thanks.
Debt owed = ar^n - x{(r^n - 1)/(r - 1)}
11) So 10,000(1.1)^n - 2,000{(1.1^n - 1)/(1.1 - 1)}
Using iteration to find n = 8 years (when the answer is < 0).
12) But in question 12 I am taking it that I have to now solve for x where n is given, but I am confused as to what the question means by "interest, calculated monthly, at 11% per annum", and so cannot discern what i should use for the period n.
I have been using n = 24 (for months) but this clearly wrong.
The answer is £23.31.
Thanks.