A loan of £10,000 was granted on 1 April 1994. The loan is repayable by an annuity payable monthly in arrears for 15 years. The amount of the monthly repayment increases by £10 after 5 years and by a further £10 after 10 years,
and was calculated on the basis of a nominal rate of interest of 8% per annum convertible quarterly.(i) Calculate the initial amount of monthly repayment.
i want to working in year
i=(1+0.08/4)^4 -1 = 0.08243216
10000= 12*X*[1-(1+I)^-5]/i(12) +X* v^5*10*12*[1-(1+I)^-5]/i(12)
+ X*v^10*10*12*[1-(1+I)^-5]/i(12)
is my equation correct? after solving equation i dont get correct ans.
what is mistake?
Last edited by a moderator: Apr 4, 2014