Chapter 10 Flashcards
1
Q
Max Repayment
A
= (Cash Surplus - Min Balance) / (1 + interest)
*if given an annual rate, divide it per month or quarter
*when you have your quarterly rate and you want to find the repayment for Q2, you must multiply the quarterly rate by 2, then Q3 by 3 and Q4 is your original annual rate.
*UNCERTAIN: if its monthly, multiply by number of months (e.g., April —> multiply monthly rate by 4), make sure to check if this is right.
