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#1




FM Problem
Hi guys, can you help me with this problem, I've tried to figure it out but I'm stucked.
A loan of 5000 can be repaid by payments of 117.38 at the end of each month for n years (12n payments), starting one month after the loan is made. At the same rate of interest, 12n monthly payments of 113.40 each accumulate to 10,000 one month after the final payment. Find the equivalent effective annual rate of interest. Thank you in advance!
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#2




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Then, going back to the second sentence, you should be able to write an equation involving (1+i)^n, i, 113.40 and and 10,000. Plug in the value of (1+i)^n; solve for i. Pretty much that's what to do. Maybe slightly more complicated. 
#3




The first statement will give a angle 12n. The second will give s double dot angle 12n. Take the ratio to give (1+i)^(12n+1) where i is the monthly rate. Add 1 to the s to convert it to 12n+1 payments. Use the formula to solve for the monthly rate. Convert to an annual rate.

#5




Close but not correct. Try the monthly rate you found and use the present value to compute N on the calculator. Then use that N to see it gives the correct Future Value.
With the correct interest rate you should find 60 payments. 
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