Expressing the interest rate as a decimal fraction, Mathematics

Assignment Help:

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


Related Discussions:- Expressing the interest rate as a decimal fraction

The unitary method, i want detail information in advance with question and ...

i want detail information in advance with question and answers.

Pendulum, how many pendulum swings will it take to walk across the classroo...

how many pendulum swings will it take to walk across the classroom

What would this expression simplify to, If 3x2 is multiplied by the quantit...

If 3x2 is multiplied by the quantity 2x3y raised to the fourth power, what would this expression simplify to? The statement in the question would translate to 3x 2 (2x 3 y) 4 .

Demerits and merits -the arithmetic mean or a.m, Demerits and merits of the...

Demerits and merits of the measures of central tendency The arithmetic mean or a.m Merits i.  It employs all the observations given ii. This is a very useful

Determine the tangent line to f ( x ) = 15 - 2x2 at x = 1, Determine the t...

Determine the tangent line to f ( x ) = 15 - 2x 2   at x = 1. Solution : We know from algebra that to determine the equation of a line we require either two points onto the li

What is the smaller probable value of this number, The sum of the square of...

The sum of the square of a number and 12 times the number is -27. What is the smaller probable value of this number? Let x = the number.  The statement that is "The sum of the

Find the shortest paths in the digraph, 1. a) Find the shortest paths from ...

1. a) Find the shortest paths from r to all other nodes in the digraph G=(V,E) shown below using the Bellman-Ford algorithm (as taught in class).  Please show your work, and draw t

Pre-calculas, find the polar coordinates of each point with the given recta...

find the polar coordinates of each point with the given rectangular coordinates. (-(squareroot(3)),3

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd