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Old 10-15-2018, 02:17 PM
Sullinator Sullinator is offline
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Default Sample problem

A loan of $50,000 is to be repaid with a series of 15 annual payments beginning two years after the date of the loan. The first five payments (X each) are half as much as the second five payments which are half as much as the final five payments. Interest is calculated at an effective annual rate of 7% for the first six years, and at an effective annual rate of 4% for the last ten years of the loan. Determine X.

I donít get it, how do you do this?
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Old 10-15-2018, 02:24 PM
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in pieces
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what's your problem man?
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Old 10-15-2018, 02:26 PM
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in pieces
Do you know how to do this problem?
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Old 10-15-2018, 02:28 PM
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You should post FM questions in the FM forum. As thread creator, you can move this one there.

Can you calculate the PV at the moment of loan of the first 5 payments, in terms of X? Of the second 5? Of the third 5? If so, add them up and set equal to 50,000. (Thatís ďin piecesĒ, as AG suggested)
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Old 10-15-2018, 02:31 PM
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This is best asked in the FM section if you want an explanation of how to do it. Is that what you are asking, or do you have a different question?

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Originally Posted by Gandalf View Post
You should post FM questions in the FM forum. As thread creator, you can move this one there.

Can you calculate the PV at the moment of loan of the first 5 payments, in terms of X? Of the second 5? Of the third 5? If so, add them up and set equal to 50,000. (That’s “in pieces”, as AG suggested)
Move the 50k one period just to get it out of the way (53,500)

Add together all of these:
Then get the PV of a 5 year annuity at payment X, at a rate of 7%.
Then you have the PV of a 10 year annuity at payment 2X with a rate of 4%, discounted 5 years at 7%
Then you have a 5 year annuity at payment 2X with a rate of 4% discounted 5 years at 4% and 5 years at 7%.

and set them equal to the 53,500. Do algebra and X = 2562 ish.

Last edited by Basso; 10-15-2018 at 02:41 PM.. Reason: answering question
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Old 10-15-2018, 02:38 PM
IANAE IANAE is offline
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I donít get it, how do you do this?
Try excel...
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Old 10-15-2018, 02:38 PM
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Originally Posted by Basso View Post
This is best asked in the FM section if you want an explanation of how to do it. Is that what you are asking, or do you have a different question?



But don't forget to advance the 50k one year at 7% and do the math with payments at the end of each year.
Idk Iím too dumb for this.
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Old 10-15-2018, 02:42 PM
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I donít get it, how do you do this?
Step 1: attain CSPA
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Old 10-15-2018, 02:43 PM
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Step 1: attain CSPA
Whatís cspa?
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Old 10-15-2018, 02:45 PM
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What’s cspa?
Not a serious reply to your question.

https://thecasinstitute.org/credenti...-data-science/
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