I had this problem in solving a very basic TVM question. Any help would be highly appreciated. I plan to borrow $100,000 from the bank and repay the loan in equal annual instalments. Assuming the bank charges 15% interest per year, how many years will it take to repay the loan? The fin calculator gives an error. Manual calculation results in log of 0. Is there any way to get the solution? If not, what would be the explanation for the error? Thinking of shooting myself for getting stuck with such a silly problem.
You need to say how much you are planning on paying (some # > 15000 or it’s negative amortizing) to know how long it will take. For instance 1 annual payment of 115000 will do it.
Yes, just realized that 15,000 annuity payment will never repay the loan. It will take infinite years to repay. Either the interest rate will have to less than 15%, or the payment, as you said, should be more than 15,000. Thanks.