#what am i doing wrong
balmy mango
Suppose that it is 20% interest rate ** per annuum** (i.e. per year) and simple interest (c.f. compound interest is adopted). \
Then $I = PRT$ and $A = P + I$, where \
$P$ is Principal, $R$ is interest per annuum, $T$ is number of years.
errant sedge
you have to show us what you're doing if you want us to tell you what's wrong with it
plush reefBOT
Kelvin Chan (Tag me 2 reply)
fierce maple
you have to show us what you're doing if you want us to tell you what's wrong wi...
one sec let me send what i am doing
PMT = [ P x r x (1 + r)^n ] / [ (1 + r)^n - 1 ]
PMT = [ 2500 x 0.0167 x (1 + 0.0167)^48 ] / [ (1 + 0.0167)^48 - 1 ]
PMT = $72.76
i tried doing it agaim, got a differnt result, and got it wrong
i just dont understand it at all
i watched videos
did everything pretty much identical to what the person did in the video
got it wrong
fierce maple
you have to show us what you're doing if you want us to tell you what's wrong wi...
if you can help that will be much apprecited
errant sedge
,w
[ P * r * (1 + r)^n ] / [ (1 + r)^n - 1 ] where P = 2500, r = 0.0167, n=48
plush reefBOT
fierce maple
You have $2,500 on a credit card that charges a 20% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?
i am guessing monthly
fierce maple
so 76.13?
errant sedge
well that's what the calculation you gave says
I just copy/pasted it
there was a rounding error or something in your original calculations
fierce maple
its right
ohhhhhhhhhhh
i see now
ok i dont understand this anymore, like i made sure i did everything correct
Payment = ($31,000 * 0.00333) / (1 - (1.00333)^(-48))
= ($103.23) / (1 - 0.63790)
≈ $103.23 / 0.36210
≈ $285.41
plush reefBOT
bosnianman
fierce maple
@balmy mango
balmy mango
I am attempting
fierce maple
ok sorry
errant sedge
,w
(31,000 * 0.00333) / (1 - (1.00333)^(-48))
plush reefBOT
errant sedge
you need to double-check the way you're doing your calculations
in particular
,w
(1.00333)^(-48)
plush reefBOT
errant sedge
you have 0.637...
fierce maple
wait u get the asnwer from just doing this ($31,000 * 0.00333) / (1 - (1.00333)^(-48))?
balmy mango
Here is my attempt
K is the amount you need to pay per month
R is the interest rate per month, compounded monthly
fierce maple
,w $300,000 * (0.00583 / (1 - 0.38907))
plush reefBOT
plush reefBOT
fierce maple
i am going to lose my mind
fierce maple
@errant sedge helped me on that question im on a diff question now
I have 12 more of these to go
balmy mango
formula of compound interest is this
balmy mango
formula of compound interest is this
You just need to memorize this formula to deal with problem of compounded interest
and A = P + I
fierce maple
I do. I do the problem with the formulas and i get it wrong
balmy mango
did my answer correct?
fierce maple
the answer was $699.90
@balmy mango Do u mind helping me with this one ?
,w 300,000 * (0.00583 / (1 - 0.38907))
plush reefBOT
balmy mango
did my answer correct?
my silly mistake in my 2nd question...P should be 31000... (but I still can't get why it is 699.90...)
balmy mango
Here is my attempt
but I believe that the 3rd question should use formula like this
fierce maple
my silly mistake in my 2nd question...P should be 31000... (but I still can't ge...
if u cant get it. Imagine me. Im over her grinding youtube videos and nothing is helping meðŸ˜
AND I STILL HAVE 12 MORE QUESTIONS TO GO OH MY
balmy mango
the answer was $699.90
I have tried many times, like compounded monthly, annually, in simple interest, but none of them reaches as low as $699.90...
fierce maple
@errant sedge explain ur ways
fierce maple
<@683299579307098167> Do u mind helping me with this one ?
I jus dont understand what i did wrong with this
balmy mango
actually I don't get where did you formula come from. Could you explain it?
errant sedge
PMT = [ P x r x (1 + r)^n ] / [ (1 + r)^n - 1 ]
PMT = [ 2500 x 0.0167 x (1 + 0.0...
use this formula
fierce maple
actually I don't get where did you formula come from. Could you explain it?
My formula? i found it online and ig it has been somewhat working
fierce maple
<@683299579307098167> Do u mind helping me with this one ?
Can any1 tell me what went wrong here
balmy mango
because I have not heard this equation ever before. I need to verify this equation.
what does P and PMT denote? because I got sth like this
In this equation, K denotes the payment you need to pay per unit time.
P0 denotes principal
fierce maple
what does P and PMT denote? because I got sth like this
If u want me to be 1000% honest i do not know. I am not the best at math so i am jus trying to finish my hw and finally go to sleep ive been trying to do this all night
balmy mango
one of my superpowers is to keep doing something mistakenly ... 🥲
you have watched the video, haven't you? Could you send this link to let me verify
because typically in Hong Kong (where I am living), we denote A as amount, I as interest and P as principal
balmy mango
per annum, compounded monthly... ... ...
fierce maple
Do u understand how to do it nowv
balmy mango
I am still checking the formula, but if the formula is correct, then just sub. P = 300,000, I = 7%, n = 12, T = 15
fierce maple
,w 300,000 * (0.00583 / (1 - 0.38907))
plush reefBOT
fierce maple
@balmy mango
balmy mango
just plug in the formula and solve it 😉
it seems that it should be 1/(1+R) + ... +1/(1+R)^n...but I am still thinking why
,w
(3000000.07/12)/(1-(1+0.07/12)^(-1512))
plush reefBOT
balmy mango
yes, this is final ans., I believe
