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A loan of £10,000 is repaid by annual payments of £1,300 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places

A loan of £10,000 is repaid by annual payments of £1,300 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places

Essentials Of Investments
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
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A loan of £10,000 is repaid by annual payments of £1,300 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places
Transcribed Image Text:A loan of £10,000 is repaid by annual payments of £1,300 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places 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? £ Number Enter an answer correct to 2 decimal places
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