SOLUTION: Engr. Como decided to buy a townhouse amounting to 5 Million if paid today. He is been told that he is to pay this at the rate of 6% compounded semi-annually. If he is to pay 200k

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Engr. Como decided to buy a townhouse amounting to 5 Million if paid today. He is been told that he is to pay this at the rate of 6% compounded semi-annually. If he is to pay 200k       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1139561: Engr. Como decided to buy a townhouse amounting to 5 Million if paid today. He is been told that he is to pay this at the rate of 6% compounded semi-annually. If he is to pay 200k every six months. How long it will take for him to pay the townhouse fully if payments are made at the beginning of the month?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
i used the following financial calculator to get your answer.

arachnoid financial calculator

here's a display of the results.

%%%

my inputs to this calculator were:

present value = 5,000,000
future value = 0
payment equals 200,000 at the beginning of each semi-annual period.
interest rate = 6% per year / 2 = 3% per semi-annual period.

i clicked on NP and the calculator told me that the number of months required to satisfy the loan was 44.07 months.

i did the same analysis using the Texas Instruments Business Analyst II and the result was 44.06553647 months.

the business analyst II doesn't round as much as the online calculator.
the results are comparable and the same if you round your answer to two decimal digits.