1. 

   9346776 Member

   I used the retrospective method and I'm not sure where I'm wrong
   4000/a(12)_5 = 945.61 pa
   Balance remaining after 3rd payment
   = 4000(1.07^3)-945.61(a(12)_3
   Where a(12)_3= (1-v^3)/i^12= 2.707442889
   > Balance = £2339.99 compared to £1763.84 using prospective method

    

   9346776, Feb 20, 2016

   #1

   Deepak007 likes this.
2. 

   Muppet Member

   use s_3 not a_3 (ie the accumulated value of the past payments.

    

   Muppet, Feb 20, 2016

   #2

   9346776 and John Lee like this.

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in