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2 years ago

What is the equation for Student Loan Payments? ( Economics and Finances)

Business

1 answer:

Rufina [12.5K]2 years ago

6 0

Answer:

p= r(PV)

---------

1-(1+)^-n

p=Payment

PV= Present Value

r=rate per period

n=number of periods

Explanation:

sorry if it is wrong

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When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.

<h3>What is the meaning of current value?</h3>

The present market value of an asset that prevails in the market is known as the current value of an asset. Using the given conditions, the current value will be the same as computed under,

$\rm Cost\ of\ Machine\ A\ + Maintenance\ Cost(Interest\ Rate)= Cost\ of\ Machine\ B\ +Maintenance\ Cost(Interest\ Rate)$

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$\rm Current\ Value\ x\ 7.25\ x\ 10\% = \dfrac{2500}{345}\\\\\rm Current Value= 10$

Hence, the significance of current value is aforementioned.

Learn more about current value here:

brainly.com/question/8286272

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