At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
Whats this for ?
I can't read your file, can you send under .pdf file?
Yes i will
You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best interest rate of 9% interest that compounds monthly for 7 years. What is the monthly payment for this loan? Show the formula that you used and the values used for each variable to calculate the monthly payment. What is the unpaid balance of the loan at the end of the 1st year? Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 1st year. What is the unpaid balance at the end of the 6th year? Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 6th year.
What formula are you learning for monthly payment?
Im just in Mathematics of Finance it was just a question we had i really dont know
monthly = P * r/12 / [ 1 - ( 1 + r/12 ) ^-m ] Does it look familiar to you?
compound interest formula
With compound interest we get accumulate amount!
Here we're looking for monthly payment for loan!
@kira3 check the formula?
Im sorry yes it does
nvm then... @Chlorophyll you good at economics?
Monthly payment = ( $50,000 * .07/12 ) / [ 1- ( 1 + .07/12) ^-84 = $804.45
First year pymt: 12 months * $804.45 = $9,653.45
Ok , so will the formula be the same as the one you showed me above ?
Ok , could you re post it please?
Unpaid balance: $50,000 - $9,653.45 = $40,346.55
monthly pymt = P * r/12 / [ 1 - ( 1 + r/12 ) ^-m ]
I'll check to make sure the same formula applied for 6 months balanced!
WHAT IS THE ANSWER TO QUESTION 5
Since now unpaid balance is reduced: Monthly pymt = ( $40,346.55 * .07/12 ) / [ 1- ( 1 + .07/12) ^-72 ]
somehow my calculator got overflowed, just don't know why?
monthly pymt = $687.87
OK im sorry t bother you like this but could you post the answers as one because thier just all over the place
5 yrs * 12 months * $687.87 = $41, 272
Unpaid pymt at the end of 6 yrs: $40,346.55 - $41, 272 = -925.45 overpayment
All you do copy and paste into your MS words !
Ha ! Ok Thanks So Much
I dont think you answered this one could you tell me what it is ? Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 1st year.