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| rev | Admin | (Created page with "'''Solution: E''' Let L = the loan amount. Note that <math></math>. The equation of value is <math display = "block"> P\cdot a_{\overline{{{k}}}|\;i}=L=120\cdot a_{\overline{5k}|j} </math> so that <math display = "block"> \begin{aligned} P=\frac{120a_{\overline{{{5k}}}\mid j}}{a_{\overline{{{k}}}\mid i}} \\ =120\frac{1-(1+j)^{-5k}}{j}\frac{i}{1-(1+i)^{-k}} \\ =120\frac{1-\left(1+i\right)^{-k}}{j}\frac{i}{1-\left(1+i\right)^{-k}} \\ =120 \frac{i}{j} \\ =120\frac{\lef...") | Nov 19'23 at 13:22 | +784 |