Jane borrows a debt of $30,000 for her study in the university. Her bank proposes a loan with interest rate 4.26% which is armotized in 4 years, the first payment if made in 3 years.
1/ How much is the value of the monthly payment of the amortization?
2/ How much is the nominal cost of the loan?
ANS: 1/ FV=PV*(1+i)^n= 30,000*(1+0.0426)^3= 33,999.648
PMT= (PV*i)/(1-(1+i)^-n)= (33,999.648*0.0426)/(1-(1+0.0426/12)^-12= 2,899.1072
2/ The nominal cost is = 2,899.1072*12 - 30,000= 4789.2863
My teacher gave my group an assignment to learn the whole annuties chappter by ourself and then present, so we need someone to check our answers.
1/ How much is the value of the monthly payment of the amortization?
2/ How much is the nominal cost of the loan?
ANS: 1/ FV=PV*(1+i)^n= 30,000*(1+0.0426)^3= 33,999.648
PMT= (PV*i)/(1-(1+i)^-n)= (33,999.648*0.0426)/(1-(1+0.0426/12)^-12= 2,899.1072
2/ The nominal cost is = 2,899.1072*12 - 30,000= 4789.2863
My teacher gave my group an assignment to learn the whole annuties chappter by ourself and then present, so we need someone to check our answers.
