ORDINARY ANNUITY CERTAIN EXAMPLE 2 1. Lisa has to pay RM 300 every month for 24 months to settle a loan at 12% compounded monthly. a) What is the original value of the loan? b) What is the total interest that she has to pay?
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The formula for the present value of an ordinary annuity is: PV = PMT * ((1 - (1 + r)^(-n)) / r) Where PV is the present value, PMT is the monthly payment, r is the interest rate per period, and n is the number of periods. In this case, PMT = RM 300, r = 12% Show more…
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