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Amortisation Amortisation
wrote...
4 years ago
Kerry is considering buying a castle of unknown value.  He would be seeking a loan to buy this castle.  Kerry affords to repay $7 000 per month and wishes to repay the loan over 29 years.  Kerry is considering two offers from X bank and Z bank.  X bank charges 5.37% p.a. compounding monthly on its loans, while Z bank charges 5.51% p.a. compounding half-yearly.  Calculate and enter the maximum amount of money Kerry is able to borrow from one of the two banks in the answer space below:

The answer is supposed to be: 1203439.64

Im using the PV:

PV= R(1-(1+i)^n))/i

but i dont seem to be getting the answer right! Please help
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wrote...
Educator
4 years ago Edited: 4 years ago, bio_man
Hi there,

I too used that formula and got the following answers. Please sign-up (FREE) to see the attachment, unfortunately guests can't view them.

Let's discuss this together,awaiting your reply
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