A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
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