I have a question regarding this exercise from the time value class. The result is always giving me 98780.14. Also why is the 348 affecting all the parentheses and not only the (1+0.005) part?
02 time value of money - annuity with mortgage exercise
Number of replies: 1
In reply to Beatriz Granja Coelho Líbano Marques
Re: 02 time value of money - annuity with mortgage exercise
by Julio Crego -
Your calculations are right. I did not round (599.6 is actually 599.5505). Therefore, I got the right loan balance, but the equal sign is abusing a bit of notation.
348 affects the numerator and denominator, but the numerator is 1, and 1 to the power of anything is one, so it is the same as if it only affects the denominator.
348 affects the numerator and denominator, but the numerator is 1, and 1 to the power of anything is one, so it is the same as if it only affects the denominator.