In repayment of a loan today, Nicholas agreed to pay a financial institution $1,000 at...
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Accounting
In repayment of a loan today, Nicholas agreed to pay a financial institution $1,000 at the end of each month over a 3 year period. Assuming the interest rate on the loan is 8.5%, what is the loan amount if the first payment is made immediately?
Please tell me how to use a financial calculator to get the answer. What is the difference between C/Y and P/Y in financial calculator? I type my way to calculate below.
2nd BGN
2nd SET
2nd QUIT
2nd FV
2nd I/Y 1 2 ENTER
CE|C CE|C 8.5 I/Y
36 N
1000 +|- PMT
CPT PV
I got PV=31,902
While the correct answer is 31, 894.
Feel free to point out my mistakes. Thank you very much.
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