Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- 3. A loan of $50,000 due in one year is to be repaid by three equal payments due today, six months from now, and one year from now. What is the amount of the equal payments if interest is 6.5% (simple interest) and the focal date is today?arrow_forwardFind the future value of this loan. $18,972 at 8.2% for 7 months The future value of the loan is $ (Round to the nearest cent as needed.)arrow_forward3a)A loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 1% p.a.? b)Suppose the payment at t=11 is increased to repay the loan (a balloon payment).What is the value of the payment at t=11? c)Alternatively, the loan may be repaid via a payment at t=12 (a drop payment).What is the value of the payment at t=12? could you please help me with this questionarrow_forward
- Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.) $26,000 after 6 years at 3% if the interest is compounded in the following ways. (a) annually$ (b) quarterly$arrow_forwardFind the future value of this loan. $23,905 at 7.8% for 12 months The future value of the loan is $ (Round to the nearest cent as needed.)arrow_forwardFind the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) P = 60,000, r = 3, t = 14, m = 12arrow_forward
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