Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:A loan of £14,000 is repaid by annual payments of £1,400 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.?
数字
years
Enter an answer correct to 2 decimal places
Suppose the payment at t = 10 is increased to repay the loan (a balloon payment).
What is the value of the payment at t = 10?
£ 数字
Enter an answer correct to 2 decimal places
Alternatively, the loan may be repaid via a payment at t = 11 (a drop payment).
What is the value of the payment at t = 11?
£ 数字
Enter an answer correct to 2 decimal places
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