Question

QUESTION 1

Answer 1

Answer 1
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r)^(n)-1)÷r]
Solve the formula for n
Fv/pmt=(1+r)^(n)-1)÷r
cross multiplication
(Fv/pmt)×r=(1+r)^(n)-1
(Fv/pmt)×r+1=(1+r)^(n)
take the log for both sides
Log ((Fv/pmt)×r+1)=n×log (1+r)
Divide each side by log (1+r)
N=[Log ((Fv/pmt)×r+1)]÷log (1+r)
Now solve to find n
N=log((10,000÷800)×0.03+1)
÷log(1+0.03)=10.77years round your answer to get 11 years

Answer 2
PMT=81,000÷(((1+0.075÷12)^(12
×19)−1)÷(0.075÷12))
=161.25

Answer 3
PMT=87,000÷(((1+0.054÷12)^(12
×8)−1)÷(0.054÷12))
=726.56