help financial maths - deferred payment plans (1 Viewer)

[anonymoushehe]

Hiii
I'm kind of having a mini stroke right now for part d, the answer says its 10.4%, but the issue is I'm not sure if I sub that N = 2 years or 1 year, since the interest is added every fortnight. i think the answer is also wrong for another reason but I'm not sure why. my working out is also attached.

ty for the help in advance

 

[jimmysmith560]

I got 10.4% by substituting 2.5 into the formula instead of 2, as follows:









With that being said, I am not entirely sure if this is indeed the correct approach and answer, in which case the 2.5 includes the initial 6 months (i.e. 2.5 years) despite the fact that no payments were made, or whether the answer is simply incorrect. Perhaps someone else could clarify this aspect.

I hope this helps!

 

[anonymoushehe]

I got 10.4% by substituting 2.5 into the formula instead of 2, as follows:









With that being said, I am not entirely sure if this is indeed the correct approach and answer, in which case the 2.5 includes the initial 6 months (i.e. 2.5 years) despite the fact that no payments were made, or whether the answer is simply incorrect. Perhaps someone else could clarify this aspect.

I hope this helps!

Ohhh that makes so much sense tyyyy for the help