Download presentation

Presentation is loading. Please wait.

Published byShonda Dulcie Freeman Modified over 8 years ago

1
1 Press Ctrl-A ©G Dear2008 – Not to be sold/Free to use Loan Repayments Stage 6 - Year 12 General Mathematic (HSC)

2
2 { } 2 Loan Repayment (1/2) By thinking of the money borrowed as the Present Value of an annuity we can calculate the Monthly Repayment. M =N r(1+r) n (1+r) n -1 M M is the amount of the monthly repayment. N N is the amount of money borrowed. r r is the rate of interest per period as a decimal. n n is the number of interest periods.

3
3 { } 3 Loan Repayment (2/2) Georgina has a loan of $200 000. Her loan is for 30 years with an interest rate of 4.8% p.a. monthly reducible. Find the monthly repayment. M = 200 000 0.004(1+0.004) 360 (1 + 0.004) 360 -1 = 200 000 x (0.004 x 1.004 360 ) (1.004 360 -1) = $1 049.33 per month { } M =N r(1+r) n (1+r) n -1 Interest per month = 4.8% ÷ 12 = 0.4% Periods= 30y x 12m = 360 = 0.004

Similar presentations

© 2023 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google