An amount of $14,000 is borrowed from the bank at an annual interest rate of 11%. a. Calculate the equal end-of-year payments required to completely pay off the loan in 4 years. b. Calculate the repayment amounts if the loan ($14,000) will be repaid in two equal installments of $7,000 each, paid at the end of second and fourth years respectively. Interest will be paid each year. Click the icon to view the interest and annuity table for discrete compounding when i= 11% per year. ..... a. The equal end-of-year payments required to pay off the loan in 4 years are $ per year. (Round to the nearest dollar.)
An amount of $14,000 is borrowed from the bank at an annual interest rate of 11%. a. Calculate the equal end-of-year payments required to completely pay off the loan in 4 years. b. Calculate the repayment amounts if the loan ($14,000) will be repaid in two equal installments of $7,000 each, paid at the end of second and fourth years respectively. Interest will be paid each year. Click the icon to view the interest and annuity table for discrete compounding when i= 11% per year. ..... a. The equal end-of-year payments required to pay off the loan in 4 years are $ per year. (Round to the nearest dollar.)
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
Problem 1PS
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Question
Transcribed Image Text:An amount of $14,000 is borrowed from the bank at an annual interest rate of 11%.
a. Calculate the equal end-of-year payments required to completely pay off the loan in 4 years.
b. Calculate the repayment amounts if the loan ($14,000) will be repaid in two equal installments of $7,000 each, paid at the end of second and fourth
respectively. Interest will be paid each year.
years
Click the icon to view the interest and annuity table for discrete compounding when i= 11% per year.
a. The equal end-of-year payments required to pay off the loan in 4 years are $
per year. (Round to the nearest dollar.)
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