Reducing Balance Loans

[slomo2315]

Hey guys,
I'm doing Business Maths as an extra module and I am wondering if i can get some help.
I was wondering how to do reducing balance loans. And if possible how to do them on the calculator?
For example,
A loan of $12000 is to be repaid in instalments of $2700 per year with an interest rate of 16% per annum being charged on the unpaid balance at the end of each yesr. After four repayments, calculate:
-The amount still owing
-The interest charged to date
Thanks heaps for the help!

[Stick]

Business Maths is not the sort of module you want to have as your back-up - not only is it consistently the worst completed section on the exams, but there's a lot of theory which you need to grasp before you go off and do the maths. I'm saying this because the problem you're stuck on is really a routine question which should pose no difficulty. I urge you to reconsider learning so many new concepts this closely to the exam.

[brenden]

Get to your TVM solver.
N = 4
% = 16
PV = 12000
PMT  = 2700
FV = [solve]
P/Y = 1
C/Y = 1
FV  = 8048.13312

I can't remember if there's a proper way to figure out interest charged by the way I'd do it
>remove interest rate from TVM (set as 0)
> solve FV
> FV = 1200
8048.13312 - 1200 = 6848.13312 = interest charged to date.

(PS. this is coming from someone gearing up for a 25 in Further so I'm probably more wrong than a bigot in an argument about asylum seekers)

[slomo2315]

Hey mate,
I tried using your values and unfortunately i ended up with an incorrect value.
Would you happen to know why this is the case?
Thanks heaps for the help

[brenden]

Hey mate,
I tried using your values and unfortunately i ended up with an incorrect value.
Would you happen to know why this is the case?
Thanks heaps for the help

Incorrect as in my answer was wrong or as in what you plugged in didn't get my answer?