A loan of 1000 is being repaid by equal annual installments over a 20 year period. If the total principal repaid during the first 10 years is 400, find the effective annual interest rate
The solution says the total principal in the first 10 years is the annual payment times v^20 + ... + v^11
can anyone explain why its v^20 + ... + v^11 and not v + ... v^10?
The solution says the total principal in the first 10 years is the annual payment times v^20 + ... + v^11
can anyone explain why its v^20 + ... + v^11 and not v + ... v^10?
ASM PE3 #12
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