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March 15th, 2016, 01:19 AM  #1 
Newbie Joined: Mar 2016 From: new zealand Posts: 2 Thanks: 0  Answer for t using PVA giving r greater C
Hi So I am asked how many years long the term of a loan would have to be for monthly payments equal to 28% of pretaxed monthly income? Weekly income is $1,844 ( assuming working 52 weeks a year) Intrest rate 5.4% and loan is $929,000 with a $20% deposit. So monthly income is $1844*52= $95,888/12= $7,990.67*.28= $2,237.38 intrest rate per month is 0.054/12= 0.0045 amount remaining on loan is $929,000*.8= $743,200 time=? using PVA formula to find t C= 2237.38 r= 0.0045 PVA=743,200 t=? t= ln(C/(C r x PV))/ ln(1+r) = ln(2237.38/(2237.380.0045*743200))/ ln(1.0045) in my answer for the first bracket I get a negative number because 2237.38 < 0.0045*743200 (3344.30). Therefore not possible as interest is greater than monthly earnings. Have I gone wrong somewhere? any help is much appreciated 
March 15th, 2016, 01:24 AM  #2  
Senior Member Joined: Feb 2016 From: Australia Posts: 1,798 Thanks: 634 Math Focus: Yet to find out. 
Hi, welcome to MMF! Can you edit your post and take any sentences out of the "[MATH] [MATH]". That way your words won't bunch together like this: Quote:
 
March 15th, 2016, 08:20 AM  #3  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,412 Thanks: 1024  Quote:
Probably an error/typo in loan amount. Who d'hell would borrow that amount, with such a salary  
March 15th, 2016, 08:01 PM  #4 
Newbie Joined: Mar 2016 From: new zealand Posts: 2 Thanks: 0 
Hey Sorry still new here and can't quite find how to edit my post Cheers for the confirmation Denis 
March 15th, 2016, 08:38 PM  #5 
Senior Member Joined: Feb 2016 From: Australia Posts: 1,798 Thanks: 634 Math Focus: Yet to find out.  
March 15th, 2016, 08:46 PM  #6 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,412 Thanks: 1024  
March 27th, 2016, 10:38 PM  #7 
Senior Member Joined: Feb 2016 From: Australia Posts: 1,798 Thanks: 634 Math Focus: Yet to find out.  Somewhere out there, in the vast nothingness of space, there exists a window, which is composed of time. What else could it mean Denis? Psst. Don't you have firewood to be collecting? Last edited by Joppy; March 27th, 2016 at 10:41 PM. 
March 28th, 2016, 05:05 AM  #8 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,412 Thanks: 1024  

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answer, finance, giving, greater, intrest, pva 
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