Question

Y bought a TV costing 13,000 by making a down payment of 3,000 and agreeing to make
equal annual payment for 4 years. How much would be each payment if the interest on
unpaid amount be 14% compounded annually?
(Ans. 3431.71)​

Answer 1

Answer:

Formula will be A=V/P(n,i)

First we have to calculate P(n,i)

Using The formula of P(n,i)

P(n,i) = (1+i)^n -1/i(1+i)^n

( 1+0.14)^4-1/0.14(1+014)^4

solving this = 2.9137668

Now A=V/P(n,i)

13000-3000= 10000

A=10000/2.9137668

=3471.71 .