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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 pre-taxed 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/(2237.38-0.0045*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: 1,834 Thanks: 649 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: $\displaystyle is 1,844(assumingworking52weeksayear)Intrestrate5.4an dloanis1,844(assumingworking52weeksayear)Intrestra te5.4andloanis929,000\$

March 15th, 2016, 08:20 AM   #3
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Quote:
 Originally Posted by jsav C= 2237.38 r= 0.0045 PVA=743,200 t=? t= ln(C/(C- r x PV))/ ln(1+r) = ln(2237.38/(2237.38-0.0045*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?
Your calculations are correct.
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
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Quote:
 Originally Posted by jsav Hey Sorry still new here and can't quite find how to edit my post Cheers for the confirmation Denis
Unfortunately there's only a small window of time before you no longer have the option to edit your post...

March 15th, 2016, 08:46 PM   #6
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Quote:
 Originally Posted by Joppy a small window of time..
What d'hell s'that ?

March 27th, 2016, 10:38 PM   #7
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Quote:
 Originally Posted by Denis What d'hell s'that ?
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
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Quote:
 Originally Posted by Joppy Psst. Don't you have firewood to be collecting?
Not a this point in time

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