27 b i) (1 Viewer)

[chrisbay90]

Used Present value of an annuity
with r = 0.006875 (8.25/12)
n = 360 (30*12)
M = $2,178.67
in the hope A = Loan amount ($290,000) in order to prove $2178.67 was the minimum monthly payment amount. However i kept ending up with A = $289,999.58.....

What did i do wrong?

Also the very last Q (28 b ii) i ended up with will decrease by 8
I had like 10sec to the end of the test and so just looked at my formula and figured it must be 8, but without having time to do the question properly and put in any working out. Assuming that is the correct answer (if not do you guys know what it is?), will i get both the full 2 marks?

 

[Kiim2507]

For the present value try doing it so you're trying to find M
i.e
290 000 = M x (the rest of the formula)

For 28...yeah it's decrease by 8
You will probably get 1 mark but you won't get 2