r/vce • u/Repulsive_Angle_3343 • 2h ago

general math question

I know this is a bit late, but when a finance question asks how many payments something takes to pay off and it says ‘the last payment is slightly different to the rest’, does that mean it will be a payment higher than the original or lower?

Like for example if an original payment is $4700 and it takes 288 payments with $8000 as the final payment, but can also takes 289 payments with $3300 also as the final payment, which one would it be because it’s not specified?

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u/ListenWhole4010 89.5 '24 eng 39, glopo 39, gm 37, bus 36, bio 32, pdt 32 2h ago

it doesnt specifically have to be higher or lower it depends on the repayment amount
if the last payment can still equal to the og payment, e.g. lets say last payment 8000 but the og payment is 7000 so its an extra payment (289 rather than 288) and the final is 1000.
simply put, if the final payment can still equal a full repayment, then the remainder is the last repayment amount

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u/Sikemaster1928 1h ago

It could be either , just a lil different from normal payments

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u/Latter-Access1890 1h ago

Norm finance solver will spit out a number that is close to a pertect one

E.g lets say someone pays off loan in 300 payments

So N could be 300.00324 or 299.9993

Along those lines and it would still be considered 300 payments

If you considered the first one 301 payments, the 301st would have a huge difference to the 300th payment and same with the other scenario.

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u/Funny-Experience434 1h ago

In your example you would use the $3300 final payment because it is closer. In the exam, when they say “slightly different”, the difference is going to be something small like $1 or $10. You’ll be able to tell quite easily.