Repayment - Financial Question

[BAH0003]

Hi,

I am having trouble with part b) of this question. I have attatched my answer for a) since I think it needs to be involved in finding the answer for b).

Question (it follows a previous one so ignore some of the languaging):

"Andrew will also join Roslyn and Richard on the holiday. Andrew borrowed $10,000 to pay for the holiday and for other expenses. Interest on this loan will be charged at the rate of 12.9% per annum, compounding monthly. Immediately after the interest has been calaculated and charged each month, Andrew will make a repayment."

a) For the first year of this loan, Andrew will make interest-only repayments each month. What is the value of each interest-only repayment?

Answer: $107.50

b) For the next three years of this loan, Andrew will make equal monthly repayments. After these three years, the balance of Andrew's loan will be $3776.15. What amount, in dollars, will Andrew repay each month during these three years?

[S_R_K]

The answer to (a) is not required, since in part (a) the payment amount = the interest amount. Hence the balance of the loan does not change.

For part (b), use a finance solver where number of payments = 36, the present and future values are given in the question, and the unknown is the payment amount.

[BAH0003]

The answer to (a) is not required, since in part (a) the payment amount = the interest amount. Hence the balance of the loan does not change.

For part (b), use a finance solver where number of payments = 36, the present and future values are given in the question, and the unknown is the payment amount.

Is it okay if you could list the specific entries. When I input them I seem to get very different values.

[BAH0003]

Is it okay if you could list the specific entries. When I input them I seem to get very different values.

No worries, I have the answer now