Hi, could someone please help my with a problem
A $50200 loan is repaid by 28 payments of $4700 each at the end of year, followed by 10 payments of $4300 each at the beginning of the month. What interest rate (i1) is being charged?
Hi, could someone please help my with a problem
A $50200 loan is repaid by 28 payments of $4700 each at the end of year, followed by 10 payments of $4300 each at the beginning of the month. What interest rate (i1) is being charged?
Clarify what happens at end of 28th year:
is the $4700 received on Dec.31, then $4300 on Jan.1st (1 day later),
or is the 1st $4300 received on Feb.1st?
Regardless, the interest rate cannot be calculated directly:
numeric method required.
If rate = 9.25%, then close to $2500 will remain owing,
IF 1st monthly payment is 1 month after last annual payment.
Hope that helps.
I'm just an imagination of your figment !
So, for each of twenty-eight years, payments of $4,700 is made on 31 December?
So the twenty-ninth payment is made on 01 January of the twenty-ninth year, in the amount of $4,300? And the last payment, in the amount of $4,300, is made on 01 October of that same year?
What formula did they give you, from which you obtained the variable "i_{1}"? How far have you gotten in plugging into that formula?
Please be complete. Thank you!
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