ali has invested his money to a CD of Bank TTC on 14 June 2019. The CD matures on 12 October 2019. The CD has a face value of 8000 $ and 7 interest. Calculate the market price of this CD if the market interest rate is 12 percent. ( assume 1 year are 365 days)

ali has invested his money to a CD of Bank TTC on 14 June 2019. The CD matures on 12 October 2019. The CD has a face value of 8000 $ and 7 interest. Calculate the market price of this CD if the market interest rate is 12 percent. ( assume 1 year are 365 days)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 14E

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

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