finance instruments – bpp revision Q15, page 16

This topic has 2 replies, 3 voices, and was last updated 14 years ago by rainbowacca.

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April 10, 2012 at 7:32 am #52174
ivros
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I do not understand how is it calculated.

Initial loan: $47m x1.05 for 5 years = $59.98 m.
Please help me.

Regards
April 12, 2012 at 1:17 am #96211
romes
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I just dont’ understand this topic. Sorry Ivors wish I could help.
April 12, 2012 at 5:40 am #96212
rainbowacca
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Hi ivros, 1.05 for 5 years means that 1.05^5, so $47 x (1.05)^5= $59.98

Hope that help!
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