5. Čarl borrowed 100 000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually. Use simple annuity. ·

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
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Solve the following problem with a full solution without using excel.

5. Carl borrowed 100 000. He agrees to
pay the principal plus interest by
paying an equal amount of money each
year for 3 years. What should be his
annual payment if interest is 8%
compounded annually. Use simple
annuity.
Transcribed Image Text:5. Carl borrowed 100 000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually. Use simple annuity.
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