Amortization Exam Questions And Correct Detailed Answers.
5 views 0 purchase
Course
AMORTIZATION
Institution
AMORTIZATION
Example of finite geometric sequence - correct answer 1+ 1/3 + (1/3)^2 + (1/3)^7= (1/3)^8 - 1
-------------
1/3 - 1
= 1.49977
What is the value of N? - correct answer the last exponent value in the set
P=?
R=?
Y...
Example of finite geometric sequence - correct answer 1+ 1/3 + (1/3)^2 + (1/3)^7=
(1/3)^8 - 1
-------------
1/3 - 1
= 1.49977
What is the value of N? - correct answer the last exponent value in the set
P=?
R=?
Y=?
K=? - correct answer P= Amount borrowed
R= interest rate per period
Y- Payment per period
K- Amount owed after k periods
P1 equals - correct answer P + rP - y
Important formula for how much still owed in Amortization - correct answer Pk=
P( 1 + r)^k - y[ (1 + r)^k -1]
____________
r
Borrow 100000. Annual interest rate is 5.4 percent. Monthly payment is 600. How much do you owe
after 3 years? - correct answer K= 12*3=36
P= 100,000
R= 0.054/12
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller RealGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
