Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem.

Question

Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem.

PV=​$17,000​; i=0.005​; PMT=​$650​; n=​?

n=________ ​(Round up to the nearest​ integer.)

Answer 1

5C+3T = 29

multiply by 3

15C+9T =87

subtract from that

7C+9T =73 to get

8C =14

C=14/8 = 7/4 = $1.75 for a chair

3T = 29 - 5C = 116/4 - 35/4 = 81/4

T = (81/4)/3 = 81/12 = 27/4 = $6.75 for a table