# Geometric Series for Time Payments

Time payments is are calculated based on Geometric Series for reducible compound interests. Basically geometric series formula is used for handling this situation.

### Worked Examples of Geometric Series for Time Payments 1

John takes out a loan of $100 000 on 1st January 2001 for a home loan. Interest is charged at 12 % per annum reducible, compounded monthly, and he will repay the loan in monthly instalments of$1200.

(a)    Find the amount owing at the end of first 3 months.

(b)    Find the amount owing at the end of $n$ months.

(c)    Find how long it takes to repay the full loan.

(d)    Find the amount owing at the end of n months if he is able to pay $2000 per month. (e) How long would repayment take if the monthly repayment is$2000?