Suppose you have a loan of amount P, and you plan to pay off the debt in 10 equal annual installments. Suppose the annual compounding rate is r. What is the present (t = 0) value of the 7th installment? (Express your answer in terms of the variables in the problem P and r and simplify your answer
Suppose you have a loan of amount P, and you plan to pay off the debt in 10 equal annual installments. Suppose the annual compounding rate is r. What is the present (t = 0) value of the 7th installment? (Express your answer in terms of the variables in the problem P and r and simplify your answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose you have a loan of amount P, and you plan to pay off the debt in
10 equal annual installments. Suppose the annual compounding rate is r. What is the
present (t = 0) value of the 7th installment? (Express your answer in terms of the
variables in the problem P and r and simplify your answer.)
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