Apps. and Interpretation for IBDP Maths Ebook 1 | Page 95

Solution
(a) (i) By TVM Solver:
N � 240
I% � 9
PV � 250000
PMT � ?
FV � 0
(M1)(A1) for correct values
P / Y �12
C / Y � 1
PMT : END
PMT �� 2193.157954
Thus, the amount of monthly payment is
2190 USD. A1 N3
(ii)
The total amount to be paid
� (2193.157954)(240)
(M1) for valid approach
� 526357.909
� 526000 USD A1 N2
(iii) The amount of interest paid
�526357.909 � 250000
(M1) for valid approach
� 276357.909
� 276000 USD A1 N2
[7]
(b) (i) By TVM Solver:
N � ?
I% � 9
PV � 250000
PMT ��2000
FV � 0
(M1)(A1) for correct values
P / Y �12
C / Y �1
PMT : END
N � 321.9090083
Thus, the number of months to repay the
loan is 322 months. A1 N3
9
(ii)
The total amount to be paid
� (2000)(322)
(M1) for valid approach
� 644000 USD A1 N2
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