Monday

September 22, 2014

September 22, 2014

Posted by **Math** on Friday, July 24, 2009 at 1:22am.

- Compound Interest : Future Value and Present Value -
**Reiny**, Friday, July 24, 2009 at 8:27ammake a 'time-graph' and label points 0,(now), 18,24 (the rate changes here), 30, and 36.

place 10000 at 0

1800 at 18 and 2400 at 30

you want to bring all three money values up to time-point 36

the 1800 is charged a rate of .115/12 for 6 months and then .1074/12 for the next 12 months.

its value at 36 = 1800(1+.115/12)^6(1+.1074/12)^12

= $2121.10

the 2400 is charged .1074/12 for 6 months

its value is 2400(1+.1074/12)^6

= $2531.80

The original debt at 36 has a value of

10000(1+.115/12)^24(1+.1074/12)^12

= 13990.97

so the amount owing is

13990.97 - 2531.80 - 2121.10

= 9338.07

(please check my arithmetic)

**Answer this Question**

**Related Questions**

compund interest - Payments of $1800 and $2400 weere made on a $10,000 variable-...

Compound Interest - Payments of $1,800 and $2,400 were made on a $10,000 ...

math(simple interest) - A $9,000 loan is to be repaid in three equal payments ...

math - 1. =SUM(A14,A8) 2. =C8+ 15 3. PMT function {PMT(D4D12,E4,-C4)} What will ...

Math please check answer - 1. =SUM(A14,A8) 2. =C8+ 15 3. PMT function {PMT(D4D12...

math - Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount ...

math - Loan #1 Year Amount owed 1 $3796 2 $3942 3 $4088 Loan # 2 Year Amount ...

Math - 1. Jacksonville Technical College received $3,445,553 in state aid on ...

math - On the June 12 interest payment date, the outstanding balance on Delta ...

Math - On the June 12 interest payment date, the outstanding balance on Delta ...