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Siren
Mar 30, 2009, 03:26 AM
Hi again. I thought I would ask you guys again, as you are very helpful. I have to show numberically that a bank account with a current balance of a thousand dollars, that earns interest at 9% pa is exactly enough to make payments on a 3 year loan of a thousand dollats which carries equal annual payments at 9% interest. The second part of the question is what is confusing me. I worked out the amount of money that will be in the bank account after 3 years by compounding, and got $1295.03. Not sure what to do afterwards though.