Monday

September 1, 2014

September 1, 2014

Posted by **Jill** on Tuesday, June 15, 2010 at 3:08pm.

- Math -
**Reiny**, Tuesday, June 15, 2010 at 5:36pmsub into your Present Value formula

PV = paym( 1 - (1+i)^-n)/i

5600 = 400 (1 - 1.03^-n)/.03

.42 = 1 - 1.03^-n

1.03^-n = .58

take log of both sides

log(1.03^-n) = log .58

-n(log 1.03) = log .58

-n = log .58/log 1.03

you do the button-pushing, I got 18.4 payments

There will be 18 full payments of $400 plus a partial payment

- Math -
**Jill**, Tuesday, June 15, 2010 at 6:59pmThanks so much. That was my answer but that formula in my book was for ordinary annuities and I wasn't sure if it applied to annuities DUE also.

- correction - maths -
**Reiny**, Tuesday, June 15, 2010 at 7:41pmI did not catch the "due" part

so I would change it to

5600 = 400 + 400 (1 - 1.03^-n)/.03 , one 400 plus n payments

5200 = 400 (1 - 1.03^-n)/.03

.39 = 1 - 1.03^-n

1.03^-n = .61

.

-n = log .61/log 1.03

-n = -16.722

n = 16.7

So in addition to the first 400 payment we need 16 more full payments, plus a partial payment

**Answer this Question**

**Related Questions**

math - A company wants to accumulate tsh 100000 to purchase replacement ...

math - find the present value of ordinary annuity payments of 890 each year for ...

Business Mathematics - Jungle Jim owes three debts: $500 due in one year plus ...

Mathematics - In the problems 1 to 3, find the present value of the given (...

Math - Meg's pension plan is an annuity with a guaranteed return of 9% interest ...

Math - A 20 year loan requires semi-annual payments of $1333.28 including ...

college math - Calculate the future value of an ordinary annuity consisting of ...

compounded interest - A bank offers a rate of 5.3% compounded semi-annually on ...

math(compunded interest ) - 6.how long will it take for a sum of money to ...

math - Jungle Jim owes three debts: $500 due in one year plus interest at 6% ...