periodic payment of the same amount with the same interval between payments with the payments be

Step 1: Identify the type of payment structure described in the question. The question mentions

Periodic payment of the same amount with the same interval...

Transcript

00:01 In this question, the motive is to calculate the value of the level payments x for the given loan repayment structure and we can write that the value of loan amount will be equal to, let us write over here loan amount and this is 10, it will be 000 that is 10 ,000.

00:21 Now the value of annual effective interest rate will be 10 % and then we can talk about the first 5 payments.

00:31 So the first payment will be here denoted as p1 and here it will be equals to 2 multiplied with 1000 because the interest due at the end of the first year on the loan amount is 10 % of the 10 ,000.

00:48 So it will be here equals to 1000 and that's why it is here equals to 2000.

00:55 Now for the year 1 let us write the value of interest.

00:59 So for the year 1 the value of interest denoted by i will be equals to 10000 and then it is multiplied with 0 .10.

01:10 So this will be here 1000.

01:13 Now we can talk about the payment.

01:15 So payment is denoted as p1 and this will be here 2000.

01:20 Now the value of principal repaid.

01:23 So it is denoted by pr which means principal repaid and it will be equals to 2000 and then it is minus 1000 which is the interest.

01:33 So this is equals to 1000.

01:35 Now let us talk about the remaining balance and the remaining balance is denoted by this expression and it will be equals to 10000 then it is minus 1000 so the remaining balance is 9000.

01:50 Let us talk about the second year now.

01:53 So in the second year we will start with the interest right.

01:57 So it is our year 2 and here the value of interest denoted by i will be 9000 that is the remaining amount multiplied with 0 .10.

02:09 So it will be 900.

02:11 Now let us talk about the payment.

02:13 So it will be p2 that is payment for year 2.

02:16 So it will again be 2000 and then we can say that the principal repaid will be equals to it is principal repaid and this is 2000 minus 900.

02:29 So, it will be equals to 1100.

02:31 Then the remaining balance denoted by rb will be equals to here it is 9000 which was the last amount last remaining amount minus it will be 1100.

02:45 So, now the remaining amount will be 7900.

02:49 Let us talk about the third year now and and here we can write year and then it will be here 3.

02:56 So here the value of interest denoted by i will be equals to 7900 multiplied with 0 .10...

Question

periodic payment of the same amount with the same interval between payments with the payments being made at the end of the period is called this:

Question

periodic payment of the same amount with the same interval between payments with the payments being made at the end of the period is called this:

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