focal date on 3 equal payments

[Colleen84]

ok sad but true I've been trying to do this question for over an hour!! Help!

A loan of $30,000 at 5% p.a. is to be settled in equal payments of 3 months, six months and nine months. Calculate the size of the equal payments and let the focal date be six months from now.

I was trying to use this formula and I don't know where I keep going wrong: S=P(1+rt)

 

[stapel]

A loan of $30,000 at 5% p.a. is to be settled in equal payments of 3 months, six months and nine months. Calculate the size of the equal payments and let the focal date be six months from now.

I was trying to use this formula and I don't know where I keep going wrong: S=P(1+rt)

How have you been using this formula? I don't see where you'd include the focal-date information.

Do the examples in (this handout) help you see how to get started?

 

[DexterOnline]

Sir Wilmer

Colleen speaks of simple interest not compound

 

[DexterOnline]

ok sad but true I've been trying to do this question for over an hour!! Help!

A loan of $30,000 at 5% p.a. is to be settled in equal payments of 3 months, six months and nine months. Calculate the size of the equal payments and let the focal date be six months from now.

I was trying to use this formula and I don't know where I keep going wrong: S=P(1+rt)

Solve for p

-30,000 (1 + 5% * 180 / 360) + p (1 + 5% * 90 / 360) + p + p (1 + 5% * 90 / 360)^(-1) = 0

 

[Colleen84]

How have you been using this formula? I don't see where you'd include the focal-date information.

Do the examples in (this handout) help you see how to get started?

Thank you for the handout...the text question in the book only gave me that information so that's why I was confused. Maybe I'm using the wrong formula I'll do the handout first then

 

[Colleen84]

Colleen, do you have your book's solution for this problem?
Would give us something "to aim at".

unfortunately the textbook only supplies answers for the odd number questions and not the even ones...this question is #22 unfortunately
using Mathematics of Business and Finance 2nd edition - Daisley, Kugathasan, Huysmans

I came up with this solution though:

3 month pymt 6 month pymt is on focal date so 9 month pymt
=x[1+.5(3/12)] x=x =x[1+.05(3/12)]^-1
=1.0125x = .987654321x


So 30000=1.0125x + x + 0.987654321x
30000=3.000154321x
x=$9999.49

Does that seem right?

 

[Colleen84]

I'm using Mathematics of Business and Finance 2nd edition - Daisley, Kugathasan, Huysmans

In this textbook only odd numbers questions have answers in the back, not the even number ones which of course the teacher gave me the #22.

I got this calculation though

P = $30,000
r=5% p.a.
for 3 months:		for 6 months the focal date is on the payment date:		for 9 months:
S= x[(1+.05(3/12)]		x = x						P= x[(1+.05(3/12)]^-1
= 1.0125x								= 0.987654321x
30000= 1.0125x + x + 0.987654321x
= 3.000154321x
x = $9999.49		Therefore the 3 equal payments would be $9999.49

 

[lex]

Paying less than the original loan. Forgot to do [MATH]30000 \times (1+\tfrac{6}{12}(0.05))[/MATH]

 

[nasi112]

Paying less than the original loan. Forgot to do [MATH]30000 \times (1+\tfrac{6}{12}(0.05))[/MATH]

lex, see you again in 2030

 

[lex]

Très drôle.
Better late than never. Well, I don't want them struggling with this for another 6 years!

 

[nasi112]

Très drôle.
Better late than never. Well, I don't want them struggling with this for another 6 years!

lol

 

[jonah2.0]

Beer soaked ramblings follow.

Paying less than the original loan. Forgot to do [MATH]30000 \times (1+\tfrac{6}{12}(0.05))[/MATH]

lex, see you again in 2030

Très drôle.
Better late than never. Well, I don't want them struggling with this for another 6 years!

lol

It's a good thing that Super Moderator stapel is no longer active.
Otherwise, your posts could have been deleted faster than the blink of an eye for reviving a 6 year old thread. I've seen it too many times that I've learned to take screenshots for future references. That's how fast she was on the draw.

But the site has been unkind to my old friend, the indefatigable math knight errant Sir Denis/Wilmer. Even his posts on this thread were decimated. DexterOnline, serial Coca Cola drinker, another good friend, did provide a correct equation of value. He did however forgot to simplify his fractions. Too bad Colleen84 didn't appreciate his vision.

 

[lex]

Thanks for the warning! The rationale in 'replying' was that someone (as I just did) might refer to it in answering another question and it's preferable to have the correct answer there (although I see the work of the proud bigot). Who am I to go against super moderators.
I am sorry to hear about the errant knight and your other friends, who have sadly passed from this forum.

 

[jonah2.0]

Beer soaked ramblings follow.

Thanks for the warning! The rationale in 'replying' was that someone (as I just did) might refer to it in answering another question and it's preferable to have the correct answer there (although I see the work of the proud bigot). ...
I am sorry to hear about the errant knight and your other friends, who have sadly passed from this forum.

Thanks Sir Lex.
The quixotic spirit of math knight errantry lives on.