calculatingthenumberofpayments幻灯片.pptVIP

Chapter 11: Ordinary Annuities: Payment Size, Term, and Interest Rate;Sometimes we need calculate the number of payments of an annuity.;Calculating the number of payments;Step 1: calculate the periodic interest rate per payment step 2:;Example;c, calculate the approximate total of the (nominal) interest savings over the life of the loan as a result of making payments of $240 instead of $220 per month. ; R=$220 An=$20,000 j=12% compounded monthly i=p=j/m=1% per month ;b, R=$220+$20=$240 An=$20,000 i=p=j/m=1% per month ;If the monthly payment is $220, n=241 the total of all payments