=slade=
Member
nat and andy take out a loan of $150 000 over 30 years at 8.25% pa interest compunding monthly. thier repayment is $1127/month. after 5 years of repaying the loan they make a lump sum payment of $40 000.
a) how long will it take to repay the loan?
b) how much is saved by making the lump sum payment?
i have no idea which formula's to use etc, can anyone help me out here? thanks!!
** also, does anyone have any guidelines they could give me so i know when to use future value, present value, or compund interest formula (when the exam doesn't specify) ??
a) how long will it take to repay the loan?
b) how much is saved by making the lump sum payment?
i have no idea which formula's to use etc, can anyone help me out here? thanks!!
** also, does anyone have any guidelines they could give me so i know when to use future value, present value, or compund interest formula (when the exam doesn't specify) ??
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