0
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2answers
63 views

Figuring out a growing monthly payment based on constraints

I'm working on a problem where I need to calculate the monthly payments for a loan given a few constraints. These payments grow at a constant rate every 2 years (24 months) and pay off the entire loan ...
1
vote
1answer
25 views

Interest Accumulation - Geometric Sequence

Hello I have just worked a question in which I get an answer different to the answer in my book. The question states: If a person deposits 500 at the end of each month for 20 years at an AER of ...
1
vote
1answer
26 views

Find $R$ in $ B = \sum_{i=1}^{60}P_i\left(1+R\right)^{60-i} $ given $B$ and $P_1, P_2, …, P_{60}$

I don't have much training in financial math and was unsure of where to start tackling the following... Given a series of payments $P_1, P_2, ..., P_{60}$ which are increasing sporadically from one ...
0
votes
0answers
21 views

Accounting for social costs in a CBA

I am writing a report regarding the cost-benefit analysis of installing a wind turbine. The report takes into account market (i.e.cost of purchasing the turbine) and non-market costs and benefits ...
0
votes
1answer
198 views

compound interest with geometric series

Were studying geometric sequences in maths and this came up as one of the questions: A mortgage is taken out for 150000 and is repaid annually with 20000 installments. Interest is charged on the ...
3
votes
2answers
74 views

Calculating annuity payment

I have a time payment question I'm having trouble with: "Bill would like to save 60000 dollars for a deposit on his first home. He decides to invest his net monthly salary of 3000 dollars in a bank ...
0
votes
2answers
196 views

A farmer buys a used tractor for Rs 12000. He pays Rs 6000 cash and agrees to pay the balance in annual…

A farmer buys a used tractor for Rs $12000$. He pays Rs $6000$ cash and agrees to pay the balance in annual installments of Rs $500$ plus $12 \%$ interest on the unpaid amount. How much will be the ...
1
vote
0answers
36 views

Financial mathematics 2

I've been given the following information: MR bob borrows 50000 now and promises to repay it in monthly installments over the next eight years. Interest is compounded monthly at 18% per year. ...
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vote
1answer
91 views

Financial mathematics

I was given the following information: A young couple decide that they want to buy a house for 220000. They have saved a deposit of 80000 and are confident that they can pay 2500 per month, ...
1
vote
2answers
124 views

interest rate not constant with constant installments

Do you know a formulae which would calculate a constant installment withe non constant interest rate. For example let's say that Mr A take a loan of 1000 and pays a monthly interest rate of 6% the ...
1
vote
2answers
98 views

Calculate breakeven when fixed revenue being added per month v/s cost

I am writing up a cost sheet for a product and I basically suck at math. Didn't know who else to turn to, so trying out Math exchange. So, I am planning to spend ...
1
vote
1answer
5k views

How to derive Gordon growth model

The formula for the Gordon growth model is: $\hspace{1in}P= \sum_{t=1}^{\infty} D\times\frac{(1+g)^t}{(1+k)^t}$ So summing the infinite series we get: $\hspace{1in}P=\frac{D(1+g)}{k-g} ...