Question

solve this

Answer 1

... whats a lac?

Answer 2

@Jack1 1 lac =100 000 Rupees

Answer 3

hiya, cheers
and a rupee is like a Pound/Dollar? (base currency)

Answer 4

Present value?

Answer 5

Present value has to total the downpayment plus the present value of the installments.

Answer 6

Present value of installments is given by
\[\huge xa_{\bar{n}}= \frac{1-(1+r)^{-n}}{r}\]
Where n is the number of installments, x is the amount paid per installment, and r is the effective rate of interest.

Once you find that, the downpayment d may be arrived at by...
\[\Huge 3000000 = xa_{\bar n}+d \]

Answer 7

r= 10
n= 12

Answer 8

what is an

Answer 9

@terenzreignz
is that a general formula?

Answer 10

Sorry, this is the general formula...
\[\huge a_{\bar{n}}= \frac{1-(1+r)^{-n}}{r}\]
For the present value of an installment of 1 per period, for n periods, called an annuity immediate.

If you make payments of x per period, for n periods, then the present value is...
\[\huge xa_{\bar n}\]

Answer 11

Let me remind you that r has so far been expressed in percent... it is in fact...

r = 10% = 0.1

Just saying...

Answer 12

oops srry

Answer 13

hmm...
\[\Large a_{\bar n}= \frac{1 - 1.1^{-1}}{0.1}\]

Answer 14

LaTeX is not working for me (for some reason)

Answer 15

1/1.1

Answer 16

1-1.1^(-12)
And you divide this by 0.1 (or multiply it by 10)

Answer 17

its n= 12 or n=1

Answer 18

n is 12
It's paid 12 times in succession, yes?

Answer 19

okay, then i got this after putting the value

Answer 20

Where do you get 11?

Answer 21

srry its 1.1 and 0.1

Answer 22

And it's only 0.1 at the denominator. Please look at the formula again...

Answer 23

okay
actually i take the LCM by taking (1.1)^-12 as 1/(1.1)^12
now, what after this

Answer 24

Well, it doesn't matter, your calculator will probably do the heavy lifting for us (unless you can calculate the 12th power of 1.1, that is)

So multiply a_n with 310000 and you'll get the present value of your installments

Answer 25

okay

Answer 26

okay... so do it.