Calculating the number of payments:
Your're prepared to make monthly payments of 125, beginning at the end of this month, into an account that pays 10% interest compnounded monthly. How many payments will you have made when your account balance reaches 20,000. I know you solve for t but I get stuck on what to do when I get to here...
16= 1-1/(1.1)`t
Calculating Annuity Present Values:
You want to borrow 45,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of 950, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60 month APR loan?
EAR verus APR:
You have just purchased a new warehouse. To finance the purchase, you're arranged for a 30 year mortgage loan for 80% of the 1600000 purchase price. The monthly payment on this loan will be 10000. What is the APR, and the EAR?
Calculating Annuities Due:
You want to buy a new sports car from Muscle Motors for 56000. The contract is in the form of a 48 month annuity due at an 8.15% APR. What will your monthly payment be?
If you are able to show how you solved the problem that would be great, thanks for any help :)
