chabongden
New member
- Joined
- Oct 1, 2017
- Messages
- 4
I have a question about compound interest, but i got the answer wrong and i don't really know what i did wrong, Can someone figure it out?
Scheduled payments of [FONT=MathJax_Main]1400[FONT=MathJax_Math-italic]d[FONT=MathJax_Math-italic]u[FONT=MathJax_Math-italic]e[FONT=MathJax_Math-italic]t[FONT=MathJax_Math-italic]o[FONT=MathJax_Math-italic]d[/FONT][FONT=MathJax_Math-italic]a[/FONT][FONT=MathJax_Math-italic]y[/FONT][FONT=MathJax_Math-italic]a[/FONT][FONT=MathJax_Math-italic]n[/FONT][FONT=MathJax_Math-italic]d[/FONT][/FONT][/FONT][/FONT][/FONT]1400duetodayand[/FONT]1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal payments. The first replacement payment is due in 18 months and the second payment is due in 4 years. Determine the size of the two replacement payments if interest is 11% compounded quarterly and the focal date is 18 months from now.[/FONT]
By using 2 formula: FV=PV(1+i)^n and PV=FV(1+i)^(-n)
I have:
1400(1+0.115)^1.5+ 1600(1+0.115)^3.5 = X + X(1+0.0275)^(-10)
=>X=2264.13 (wrong)
I figured out that it should be 1600(1+0.115)^-3.5 and i got the new answer which is 1555.50 but it was still wrong, can someone solve this?
Scheduled payments of [FONT=MathJax_Main]1400[FONT=MathJax_Math-italic]d[FONT=MathJax_Math-italic]u[FONT=MathJax_Math-italic]e[FONT=MathJax_Math-italic]t[FONT=MathJax_Math-italic]o[FONT=MathJax_Math-italic]d[/FONT][FONT=MathJax_Math-italic]a[/FONT][FONT=MathJax_Math-italic]y[/FONT][FONT=MathJax_Math-italic]a[/FONT][FONT=MathJax_Math-italic]n[/FONT][FONT=MathJax_Math-italic]d[/FONT][/FONT][/FONT][/FONT][/FONT]1400duetodayand[/FONT]1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal payments. The first replacement payment is due in 18 months and the second payment is due in 4 years. Determine the size of the two replacement payments if interest is 11% compounded quarterly and the focal date is 18 months from now.[/FONT]
By using 2 formula: FV=PV(1+i)^n and PV=FV(1+i)^(-n)
I have:
1400(1+0.115)^1.5+ 1600(1+0.115)^3.5 = X + X(1+0.0275)^(-10)
=>X=2264.13 (wrong)
I figured out that it should be 1600(1+0.115)^-3.5 and i got the new answer which is 1555.50 but it was still wrong, can someone solve this?