document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1188317>Question 1188317</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Gladys borrows 400 000 pesos at an interest rate of 4% per year compounded semi-annually.She agreed to settle her loan by making 12 semi-annual payments at the end of each six months.If the first payment is made at the end of 2 years,compute the periodic payment. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #819391 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=819391\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> she owes 400,000 tody.<BR>\n" );
document.write( "the interest rate is 4% per year compounded semi-annually.<BR>\n" );
document.write( "she starts payment at the end of 2 years.\r<BR>\n" );
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document.write( "calculator to use online is <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "using my ti-ba-ii business analyst calculator, i do the following.\r<BR>\n" );
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document.write( "my calculator and the online calculator do the same thing, except that my calculator doesn't round the results to the nearest penny each time.<BR>\n" );
document.write( "this could make a difference in the final result by a few pennies.<BR>\n" );
document.write( "it's not enough to cause concern, except that your online problem solution might be affected by the small difference in results.<BR>\n" );
document.write( "that's why i give you both, when there is a difference.\r<BR>\n" );
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document.write( "first i get the future value of 400,000 for 2 years at 4% compounded semi-annually.\r<BR>\n" );
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document.write( "inputs are:\r<BR>\n" );
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document.write( "pv = -400,000<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "np = 2 years * 2 = 4 semi-annual time periods.<BR>\n" );
document.write( "ir = 4% per year / 2 = 2% per semi-annual time period.<BR>\n" );
document.write( "pmt = 0<BR>\n" );
document.write( "payments at end or beginning of each time period do not apply for this first analysis because there is no semi-annual payment involved.\r<BR>\n" );
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document.write( "output is fv = 432,082.974\r<BR>\n" );
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document.write( "that's how much is in the account at the end of 2 years.\r<BR>\n" );
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document.write( "that needs to be paid back in 12 equal semi-annual payments.\r<BR>\n" );
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document.write( "using the ti-ba-ii calculator again, inputs are:\r<BR>\n" );
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document.write( "pv = 432,082.974<BR>\n" );
document.write( "fv = 0<BR>\n" );
document.write( "np = 12 semi-annual time periods<BR>\n" );
document.write( "ir = 2% per semi-annual time period<BR>\n" );
document.write( "payment is made at the end of each semi-annual time period.\r<BR>\n" );
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document.write( "output is that a payment of 40,941.73937 needs to be paid at the end of each semi-annual time period for 12 semi-annual time periods.\r<BR>\n" );
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document.write( "that should be your solution.\r<BR>\n" );
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document.write( "ignore the negative and positive values.<BR>\n" );
document.write( "they are required by the calculator, but can become confusing when dealing with two separate analyses, as was being done here.\r<BR>\n" );
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document.write( "here are the results from using the online financial calculator.<BR>\n" );
document.write( "they will be very close to the results i got with the ti-ba-ii, if not right on.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/120201.jpg\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/120202.jpg\" >\r<BR>\n" );
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document.write( "the following excel spreadsheet printout shows the semi=annual period by semi-annual period remaining balances in the account.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/120203.jpg\" >\r<BR>\n" );
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document.write( "the displays are rounded to the nearest penny, but the actual values used in the calculations are not rounded.\r<BR>\n" );
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document.write( "at the end of the loan period, the remaining balance is 0, as it should be.\r<BR>\n" );
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document.write( "your solution is that the periodic payment is equal to 40,941.74 when rounded to the nearest penny.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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