Revision as of 01:01, 27 November 2023 by Admin (Created page with "(Odufrey problem) The amount of principal repaid in the 3rd payment of a 5-year level payment loan at 9% is 300. What is the original loan value? <ul class="mw-excansopts"> <li>1,470</li> <li>1,495</li> <li>1,502</li> <li>1,512</li> <li>1,533</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = University of Windsor Old Tests 62-392 Theory of Interest | access-da...")
ABy Admin
Nov 27'23
Exercise
(Odufrey problem) The amount of principal repaid in the 3rd payment of a 5-year level payment loan at 9% is 300. What is the original loan value?
- 1,470
- 1,495
- 1,502
- 1,512
- 1,533
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
ABy Admin
Nov 27'23
Solution: D
Let [math]L[/math] be loan amount and [math]K[/math] be annual payment. Repayment amount in third year is [math]300=K v^3=K(1.09)^{-3}[/math]. Thus [math]K=[/math] [math]300(1.09)^3=388.51[/math]. The loan amount is [math]L=K a_{\overline{5} \mid}=1511.16[/math].
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.