that period. How much can he borrow?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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7

A few years ago Dimi bought himself a
house. He received a loan from his
bank of 250,000 euros that he needed
to pay back with constant monthly
payments during 20 years at r1/12 =
0.12%. After five years of paying back
the loan, Dimi wants to borrow an
additional amount to buy a warehouse
for his business. The amount is equal
to the principal that has been repaid in
that period. How much can he
borrow?
Transcribed Image Text:A few years ago Dimi bought himself a house. He received a loan from his bank of 250,000 euros that he needed to pay back with constant monthly payments during 20 years at r1/12 = 0.12%. After five years of paying back the loan, Dimi wants to borrow an additional amount to buy a warehouse for his business. The amount is equal to the principal that has been repaid in that period. How much can he borrow?
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