How do you evaluate #\frac{375}{1-(1+\frac{0.075}{12})^{-12(30)}}#?

1 Answer
Dec 25, 2017

#375/(1-(1+0.075/12)^(-12(30)))=419.5287#

Explanation:

#375/(1-(1+0.075/12)^(-12(30))#

= #375/(1-(1+0.00625)^(-360))#

= #375/(1-1.00625^(-360))#

= #(375xx1.00625^360)/(1.00625^360-1)#

We can use logarithmic tables or scientific calculator (which has a function #x^y#) to calculate #1.00625^360# and this comes out to #9.4215339#.

Hence above expression becomes #(375xx 9.4215339)/8.4215339=419.5287#