Explanation Given Information: Payment frequency is 6 months, the time duration is 2.5 years, the nominal rate of return is 12 % and present value amount is $ 10 , 400 . Formula used: The formula for future value of the ordinary annuity is, F V = P m t × ( 1 + i ) n − 1 i Here, FV is the future value, Pmt is the Annuity payment, i is the interest rate per period (nominal rate ÷ periods per year) and n is the number of periods (years × periods per year). Calculation: Consider that payment frequency is 6 months, the time duration is 2.5 years, the nominal rate of return is 12 % and present value amount is $ 10 , 400 . The rate period is 6 % or 0.06 ( 12 % ÷ 2 period per year ) . The number of periods is 5 ( 2 .5 years × 2 period per year )

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 12, Problem 31AT

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To calculate: The amount of loan payment when payment frequency is 6 months, the time duration is 2.5 years, the nominal rate of return is 12% and present value amount is $10,400.

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Chapter 12, Problem 30AT

Chapter 12, Problem 32AT

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Chapter 12 Solutions

Contemporary Mathematics for Business & Consumers

Ch. 12.I - Freeport Bank is paying 8% interest compounded...Ch. 12.I - Vista Savings Loan is paying 6% interest...Ch. 12.I - Katrina Byrd invested $250 at the end of every...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...

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The amount of loan payment when payment frequency is 6 months, the time duration is 2.5 years, the nominal rate of return is 12 % and present value amount is $ 10 , 400 .

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To calculate: The amount of loan payment when payment frequency is 6 months, the time duration is 2.5 years, the nominal rate of return is 12% and present value amount is $10,400.

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Chapter 12 Solutions