Assume that you have a monthly installment for ten years, your loan is 10000, and the interest rate is 1% but it changes at the beginning of February rising 1%, and calculate the new installments.
Assume that you have a monthly installment for ten years, your loan is 10000, and the interest rate is 1% but it changes at the beginning of February rising 1%, and calculate the new installments.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that you have a monthly installment for ten years, your loan is 10000, and the interest rate is 1% but it changes at the beginning of February rising 1%, and calculate the new installments.
10000/10=1000 yearly installment
1000/12 monthly installments
But the interest rate changed from February, so the first month's installments should be 1000/12, and the second month's installments should be 10000-(10000-1000/12)*3%
I want to know how to calculate that in a formula. I think we use AIFV=(1+0.03/12)^20 something like that to calculate
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