Question 1139562: Engr. Sajise wants to buy a condominium that costs 20Million. She wants to pay it at the rate of 4% compounded monthly. If she will pay 200k per payment. How much is the accumulated amount of the condominium? Payments are made at the beginning of the month.
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! using the online financial calculator at arachnoid financial calculator, i get the following.
inputs to the calculator are:
present value = 20,000,000
future value = 0
payment at the beginning of each month is 200,000.
this is shown as negative since it's money going out.
interest rate = 4% per year / 12 = .333333333% per month.
i click on NP and the calculator tells me that the loan will be paid off in 121.34 months.
121.34 * 200,000 = total payments of 24,268,000.
total interest paid is 24,268,000 - 20,000,000 = 4,268,000.
accumulated mount of the condominium is the total payments made.
24,268,000 should be your answer.
i used the more detailed Texas Business Analyst II calculator that doesn't round intermediate results and the solution there was shown as total payments of 24,268,679.54, based on a loan period of 121.3433977 months.
your solution for total payments should be either 24,268,000 or the more detailed 24,268,679.54.
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