Scribd Logo
Upload

Welcome to Scribd!

  • Question With Answer 11

    Uploaded by

    rook semay
    67 views1 page
    Marta borrowed 5000 Birr from a bank at an interest rate of 12% compounded monthly. Over a repayment period of 3 years (36 months), the total amount she had to repay was 20,519.66 Birr. Therefore, the required equal monthly payment amount was 569.99 Birr.

    Original Description:

    Original Title

    Question With Answer 11 Docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Marta borrowed 5000 Birr from a bank at an interest rate of 12% compounded monthly. Over a repayment period of 3 years (36 months), the total amount she had to repay was 20,519.66 Birr. Therefore, the required equal monthly payment amount was 569.99 Birr.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    67 views1 page

    Question With Answer 11

    Uploaded by

    rook semay
    Marta borrowed 5000 Birr from a bank at an interest rate of 12% compounded monthly. Over a repayment period of 3 years (36 months), the total amount she had to repay was 20,519.66 Birr. Therefore, the required equal monthly payment amount was 569.99 Birr.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    1.

    Marta borrows Birr 5000 from a bank at 12% compounded monthly and promise to discharge
    the debt by equal payments at the end of each month for three years.
    Required:
    A. Find the amount of each payment
    Given: p=5000, r=12%, m=12, t=3
    Required: amount of each moths payment
    Solution:
    Let ci be compound interest
    A= p(1+i) n
    r mt
    A=p(1+ ¿¿
    m
    0.12 36
    A= 5000(1+ ¿¿
    3
    =5000(1+0.04)36
    =5000x(1.04)36
    = 20,519.662
    20,519.662
    Since the payment is equal in each month, it will be =569.99
    36

    You might also like