Question

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

Answer 1

`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`