Expressing the interest rate as a decimal fraction, Mathematics

Total Contribution per Year for next 10yeras =$1000+$800 =$1800

So Total Future fund Vaule  =$1800*(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10)) =30938.6145

So The Vaule of Corpus =$30938.6145 =PV

Substituting pv (present value for k and PMT (payment) for a in the equation 12 results in

PV =PMT [1-(1+i)-n]/i

K = The original loan or investment amount.

n = The number of compounding periods constituting the duration of the investment or loan.

K *Rn = The future value (FV) of K after n compounding periods (years).

i =The interest rate per compounding period.

a =The annuity

R=(1+i/100)

Expressing the interest rate as a decimal fraction instead of as a percentage value results in

R = (1+ i )

PV =5000*((1-(1+8.7)-30)/0.087) =5000*((1-power((1+0.087),-30)/8.7) =52766.21235

So Increase installments  = (PV/(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10))) =(52766.21235//(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10)))

New installment =$3069.923582

Posted Date: 3/13/2013 2:56:48 AM | Location : United States







Related Discussions:- Expressing the interest rate as a decimal fraction, Assignment Help, Ask Question on Expressing the interest rate as a decimal fraction, Get Answer, Expert's Help, Expressing the interest rate as a decimal fraction Discussions

Write discussion on Expressing the interest rate as a decimal fraction
Your posts are moderated
Related Questions
Leslie ordered a slice of pizza for $1.95, a salad for $2.25, and a soda for $1.05. What was the total cost of her order? The cost of every item must be added together; $1.95 +

Limit Properties :  The time has almost come for us to in fact compute some limits.  Though, before we do that we will require some properties of limits which will make our lif

how do you multiply fractions

I need some material on Bachet equation

how do you do algebra with division

apllication in business and economics

The King Company is producing two types of products: A and B. Both products are produced on the similar machining operation. The machines operate on two 8-hour shifts, 5 days per w

what is history of Unitary method

#question.find the number of combinations of the letters a, b, c, and d taken 3 at a time.

#There is a balance of $1,234 and this person receive a refund check in the amount of $25 with her paycheck that was deposited into her account for $1500 which made her balance $27