I am not sure what formula to use... maybe d=r/1+rn

I am not sure what formula to use... maybe d=r/1+rn

Tutors, please sign in to answer this question.

Atlanta, GA

PV = 2900

I = .11

PMT = -638

FV = 0

You did not say how often the payments are being made. I am going to assume they are made once per year since $638 is a pretty heft payment to be making every month on a $2900 loan.

You can just enter the above variables into a TVM (time value of money) solver, or you can use a formula. The formula is quite messy however. Here is the formula for the present value of an annuity:

PV = PMT * [(1-(1+i)^-n) / i ]

Use algebra to rearrange to the following:

(1+i)^n = 1 / [1 - (PV / PMT)*i]

You can solve for n by applying the following property of logarithms:

ln [( 1+i)^n]= n[ln(1+i)]

n = ln ( 1 / [1 - (PV / PMT)*i] ) / ln (1+i)

I know this is extremely difficult to see and read given the font restrictions.

Justin H.

Math, Computer Science, and SAT Tutoring from a Google Engineer

New York, NY

5.0
(417 ratings)

Kevin S.

Personalized Tutoring Services

Brooklyn, NY

5.0
(231 ratings)

Jing X.

IVY-graduate specializing in SAT, ACT, Math and College App

Brooklyn, NY

4.9
(77 ratings)

- Accounting 273
- Marketing 30
- Math 9354
- Finance 308
- Algebra 1 3935
- Career Development 6
- Study Skills 7
- Economics 233
- Prealgebra 167
- Algebra 2 3294