Question
use compound interest formula A=A0(1+r)nt. Suppose periodic deposits, of $P, are made to an account ntimes per year with an APR of 'r' for 't'
use compound interest formula A=A0(1+r)nt. Suppose periodic deposits, of $P, are made to an account ntimes per year with an APR of 'r' for 't' years.
1. Express the future value of this annuity as an infinitesum, then determine a closed form formula.
2. Using the result obtained above, derive the payment formulafor determining the amount of each payment (with n payments/year)one would make for barrowing $A with an APR of 'r' for 't'years.
use compound interest formula A=A0 (1 +r) nt. Suppose periodic deposits, of $P, are made to an account ntimes per year with an APR of r' for 't' years. 1. Express the future value of this annuity as an infinitesum, then determine a closed form formula. 2. Using the result obtained above, derive the payment formulafor determining the amount of each payment (with n payments/year)one would make for barrowing SA with an APR of 'r' for t'years
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
