Thank you for the opportunity to help you with your question!
You use the FV of annuity formula. compounding monthly
Let me uploadPlease let me know if you need any clarification. I'm always happy to answer your questions.
Sorry not future. You use compound formulaA= P (1+R)^n
A= 100,000 (1+0.01)^60 = 181,669.67
Your answer cannot be correct. There is no way a loan amount paid can be less than theamount borrowed
Thanks for the reply. So I actually tried that using FV= C [ (1+i)^n -1 ] / i
I plugged in 1028.61 for the C value, .12 for interest, and 60 for n. The value I got is very large, 7.68 E6. Am I making a stupid mistake somewhere here? I also tried it with n=5 with no luck. Thanks again for the help
What you're saying makes sense. The answer is from the textbook but I will check it with my professor. I correctly calculated the $1028.61 value using a somewhat lengthy formula. I'll let you know what I find out
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