debt

[logistic_guy]

here is the question

How long will it take me to pay off a $\displaystyle \$10,595$ debt at $\displaystyle 16\%$ if I pay $\displaystyle \$250$ per month?


my attemb
$\displaystyle \frac{10595}{250} = 42.38$ month
am i correct?

 

[The Highlander]

here is the question

How long will it take me to pay off a $\displaystyle \$10,595$ debt at $\displaystyle 16\%$ if I pay $\displaystyle \$250$ per month?


my attemb
$\displaystyle \frac{10595}{250} = 42.38$ month
am i correct?

It looks unlikely (to me) that you are correct.

What is the 16% there for?

I would assume that this is an interest rate that is being charged on whatever the current balance of the debt is.

Unfortunately, your presentation of the question doesn't say whether this interest is simple or compound (and how often it is compounded) but, either way the debt is likely to be periodically increased while you are paying it off.

Therefore, by the time you eventually clear it off you will have paid more than just $10,595.

PS: I believe you mean to write "my attempt" (not "my attemb")

Hope that helps.

 

[logistic_guy]

It looks unlikely (to me) that you are correct.

thank

What is the 16% there for?

to force me pay more

Unfortunately, your presentation of the question doesn't say whether this interest is simple or compound (and how often it is compounded) but, either way the debt is likely to be periodically increased while you are paying it off.

do you know rule of thumb?
my teacher say if the question don't say anything about the interest, it's annual compound

Therefore, by the time you eventually clear it off you will have paid more than just $10,595.

i think you're right. i've to use the interest rate to pay more than the original loan

PS: I believe you mean to write "my attempt" (not "my attemb")

english isn't my language

Hope that helps.

very much

 

[jonah2.0]

Beer induced reaction follows.

english isn't my language

Just out of curiosity, what is your language?

 

[logistic_guy]

Just out of curiosity,

الفضول قتل القطة

what is your language?

اللغة العربية
وهي لغة القرآن

 

[khansaheb]

here is the question

How long will it take me to pay off a $\displaystyle \$10,595$ debt at $\displaystyle 16\%$ if I pay $\displaystyle \$250$ per month?


my attemb
$\displaystyle \frac{10595}{250} = 42.38$ month
am i correct?

NO!
Calculating the time to pay off is more complicated - this is similar to calculation of annuity.

Please tell us what you find after consulting your textbook, and/or Google and/or Wikipedia.

 

[khansaheb]

here is the question

How long will it take me to pay off a $\displaystyle \$10,595$ debt at $\displaystyle 16\%$ if I pay $\displaystyle \$250$ per month?


my attemb
$\displaystyle \frac{10595}{250} = 42.38$ month
am i correct?

To get an approximate answer you could use rule of 72.

 

[logistic_guy]

NO!
Calculating the time to pay off is more complicated - this is similar to calculation of annuity.

Please tell us what you find after consulting your textbook, and/or Google and/or Wikipedia.

thank

can you explain the complicated method of calculating time?

To get an approximate answer you could use rule of 72.

what's that?

 

[khansaheb]

thank

can you explain the complicated method of calculating time?


what's that?

If you deposit amount P to your savings account which pays an interest of I, calculate the amount in your account after a period of 'n'.

 

[jonah2.0]

Beer induced reaction follows.

To get an approximate answer you could use rule of 72.

what's that?

Google is your friend.

 

[The Highlander]

English isn't my language

I know, that's why I told you the correct version of what to write: "My attempt:-" not "my attemb"
(The system should be flagging that up as a spelling error for you anyway; do you just ignore such help?)

الفضول قتل القطة

اللغة العربية
وهي لغة القرآن

It would have been a great deal more informative if you had just told us (in English) what that language is.

Why do you keep enclosing numbers (and other things that don't require it) in LaTex?
There is absolutely no need to do that and it makes your questions harder to read when they arrive as an email (and all the LaTex brackets are then visible)!

And please stop posting all your questions in the same topic area!
This is not a Geometry or a Trig problem!
(And neither are many others of your recent posts!)

You are likely to get better help from others if you take a bit more time to consider what you are posting before you just throw it in heedlessly.

 

[logistic_guy]

I know, that's why I told you the correct version of what to write: "My attempt:-" not "my attemb"
(The system should be flagging that up as a spelling error for you anyway; do you just ignore such help?)

It would have been a great deal more informative if you had just told us (in English) what that language is.

Why do you keep enclosing numbers (and other things that don't require it) in LaTex?
There is absolutely no need to do that and it makes your questions harder to read when they arrive as an email (and all the LaTex brackets are then visible)!

And please stop posting all your questions in the same topic area!
This is not a Geometry or a Trig problem!
(And neither are many others of your recent posts!)

You are likely to get better help from others if you take a bit more time to consider what you are posting before you just throw it in heedlessly.

you focus on my language, mistakes, and how i write things
but forget the most important thing which to give me extra hints on how to solve the question

thank highlander very much

 

[khansaheb]

If you deposit amount P to your savings account which pays an interest of I, calculate the amount in your account after a period of 'n'.

Almost 12 hrs. passed since I posed the problem above - do you have a response to my query?

 

[logistic_guy]

If you deposit amount P to your savings account which pays an interest of I, calculate the amount in your account after a period of 'n'.

Almost 12 hrs. passed since I posed the problem above - do you have a response to my query?

i think this is the basic formula
$\displaystyle A = P(1+\frac{I}{k})^{kn}$

 

[khansaheb]

i think this is the basic formula
$\displaystyle A = P(1+\frac{I}{k})^{kn}$

What is 'k'? - you did not define it.

 

[logistic_guy]

What is 'k'? - you did not define it.

$\displaystyle k$ is the number of compounding periods per year

 

[jonah2.0]

Beer induced reaction follows.

الفضول قتل القطة


اللغة العربية
وهي لغة القرآن

So it's Arabic. I seem to recall that the practice of charging of interest is frowned upon much in the Arab world that it's considered illegal but I guess the study of interest (and annuity) mathematics is quite another matter altogether.

 

[logistic_guy]

Beer induced reaction follows.

So it's Arabic. I seem to recall that the practice of charging of interest is frowned upon much in the Arab world that it's considered illegal but I guess the study of interest (and annuity) mathematics is quite another matter altogether.

nice point but it's only applied upon Arabs who are muslims because they believe of the Holy Quran which prohibit usury (the practice of charging excessive interest rates). do Muslim people use banks? It's a good question for discussion. we know banks use usury, that's why islamic banks was created. they tell us islamic banks don't use usury but people like me who study accounting and finance i know they're lying. so even islamic banks use usury, but they're smart because they use it with different names and procedures so that average muslim people who don't have idea about accounting and finance believe them easily. is banks, especially islamic ones fraudulent? it's another good question for discussion.

the most important point is why usury is prohibited? the Holy Quran is similar to the Holy Bible, when it prohibit something, it forbid it for the benefit of all humanity. if you want know the benefits of prohibiting usury, you can look it up by yourself.

but I guess the study of interest (and annuity) mathematics is quite another matter altogether.

one of the benefits of studying interest and annuity is to recognize which bank and people is lying and deceiveing

i'm only interested to solve this finance question. if you can give me hint, i'll very appreciate it

 

[jonah2.0]

Beer drenched reaction follows.

...
How long will it take me to pay off a $\displaystyle \$10,595$ debt at $\displaystyle 16\%$ if I pay $\displaystyle \$250$ per month?

my attemb
$\displaystyle \frac{10595}{250} = 42.38$ month
am i correct?

Thou art not correct.
The book expects you to solve problem 6 using spreadsheet software.
It can done with algebra. It comes down to merely solving for $\displaystyle x$ in $\displaystyle a^x=b$ in the amortization formula.

 

[logistic_guy]

Rate​

16%​

Initial Balance​

10,595​

​

Month​	Payment​	Interest​	Payment after Interest​	Ending Balance​
1​	250​	141.27​	108.73​	10486.27​
2​	250​	139.82​	110.18​	10376.09​
3​	250​	138.35​	111.65​	10264.44​

I thought to show my calculation for the first three months before I do it in the excel. What do you think of it?