SOLUTION: What is the Present Value of a loan that will have regular payments pf $50 bi-weekly for 6 years at a finance rate of 7% per annum?

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Question 933932: What is the Present Value of a loan that will have regular payments pf $50 bi-weekly for 6 years at a finance rate of 7% per annum?
Answer by ptfile(81) About Me  (Show Source):
You can put this solution on YOUR website!
Let A = Periodic amount
    R = Interest rate per annum
    N = number of intervals
    T = Duration of the loan
   FV = Future Value
   PV = Present Value

FV+=+A%28%28%281%2Br%2Fn%29%5E%28nt%29-1%29%2F%28r%2Fn%29%29
FV+=+PV%281%2Br%2Fn%29%5E%28nt%29
A%28%28%281%2Br%2Fn%29%5E%28nt%29-1%29%2F%28r%2Fn%29%29+=+PV%281%2Br%2Fn%29%5E%28nt%29


50%28%28.521102918%29%2F%28.002692308%29%29+=+PV+%281.521102918%29
50%28193.55249028%29+=+PV+%281.521102918%29
9677.62+=+PV+%281.521102918%29
6362.24+=+PV
The present value is $6362.24