Question

PV=PMT(1-(1+i)^-n)/i
PV=13,000
PMT=250
n=?
i= 0.002875
25,111= 250 (1-(1+0.002875^-n)
/0.002875
I know n= 56.41, but I ant to know the steps it took to get the answer.

Answer 1

\[\text{PV}=\text{PMT}\frac{1-(1+i)^{-n}}{i}\\
13,000=250\frac{1-(1+0.002875)^{-n}}{0.002875}\\
\, \\

13,000( 0.002875)=250[1-1.002875^{-n}]\\
\frac{37.375}{250}=1-1.002875^{-n}\\
0.8505=1.002875^{-n}\\
\log(0.8505)=\log[(1.002875)^{-n}]\\
\log(0.8505)=-n\log(1.002875)\\
\, \\
n=-\frac{\log(0.8505)}{\log(1.002875)}=56.4047\]

Answer 2

Thank you so much! I've been struggling to solve this problem. :)

Answer 3

:)