Is there any reason why the outstanding balance shouldn't be in agreement at the end of the Tth period under both methods of analysis? I am looking at Example 2 (ADAPT) on page 355 of the ASM manual.
The loan is $22,000 over 10 years at 8%, so annual payments are $3,278.65
If I wanted to find the outstanding balance at the end of the 7th year in the "standard" way I'd just find ($3,278.65*(a angle 3 at 8%)), which gives me the PV at the end of the 7th year of the 3 remaining payments and is equal to $8,449.39.
Under the sinking fund method we'd subtract the value of the sinking fund at the end of the 7th year from the original loan value; I agree with the manual when it says that the balance is $7,972.53.
Obviously $8449.39 isn't $7,972.53 though. What am I missing?
The loan is $22,000 over 10 years at 8%, so annual payments are $3,278.65
If I wanted to find the outstanding balance at the end of the 7th year in the "standard" way I'd just find ($3,278.65*(a angle 3 at 8%)), which gives me the PV at the end of the 7th year of the 3 remaining payments and is equal to $8,449.39.
Under the sinking fund method we'd subtract the value of the sinking fund at the end of the 7th year from the original loan value; I agree with the manual when it says that the balance is $7,972.53.
Obviously $8449.39 isn't $7,972.53 though. What am I missing?
Outstanding Balance In The Tth period (sinking fund vs regular annuity)
0 commentaires:
Enregistrer un commentaire