A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made, plus quarterly payments of interest on the outstanding balance at a quarterly rate of 4%. Find the pre- sent value of the payments to yield an investor a quarterly rate of 3% if the principal payments are CHAPTER 3 (a) 1000 per year for 15 years; or (b) 1000 in the 1" year, 2000 in the 2nd year..... 5000 in the 5th year: or (c) 5000 in the 1" year, 4000 in the 2nd year,. 1000 in the 5th year.
A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made, plus quarterly payments of interest on the outstanding balance at a quarterly rate of 4%. Find the pre- sent value of the payments to yield an investor a quarterly rate of 3% if the principal payments are CHAPTER 3 (a) 1000 per year for 15 years; or (b) 1000 in the 1" year, 2000 in the 2nd year..... 5000 in the 5th year: or (c) 5000 in the 1" year, 4000 in the 2nd year,. 1000 in the 5th year.
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 8EP
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A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made, plus quarterly payments of interest on the outstanding balance at a quarterly rate of 4%. Find the present value of the payments to yield an investor a quarterly rate of 3% if the principal payments are 244> CHAPTER 3 (a) 1000 per year for 15 years; or (b) 1000 in the 1st year, 2000 in the 2nd year,..., 5000 in the 5th year; or (c) 5000 in the 1st year, 4000 in the 2nd year,..., 1000 in the 5tℎ year.
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