How to solve for R

[fawazalusail]

R= 18,000(0.051/4/(1+0.051)^20 -1)

The answer is, R= 795.82.

How ! I tried to calculate that but i couldn't get the same answer.

Please explain. Thanks.

 

[mmm4444bot]

Please show us what you tried.

(See point #3, on THIS PAGE.)

 

[JeffM]

R= 18,000(0.051/4/(1+0.051)^20 -1)

The answer is, R= 795.82.

How ! I tried to calculate that but i couldn't get the same answer.

Please explain. Thanks.

If your formula is correct, the answer is wrong. If the answer is correct, your formula is wrong. Of course, both could be wrong.

\(\displaystyle R = 18000 * \dfrac{\frac{0.051}{4}}{(1 + 0.051)^{20} - 1} = \dfrac{229.5}{(1.051)^{20} - 1} \approx \dfrac{229.5}{2.7 - 1}= \dfrac{229.5}{1.7} \approx 134.66.\)

I suspect the correct formula is:

\(\displaystyle R = 18000 * \dfrac{\frac{0.051}{4}}{(1 + \frac{0.051}{4})^{20} - 1} = \dfrac{229.5}{(1.01275)^{20} - 1} \approx \dfrac{229.5}{0.288} \approx 795.82.\)