Calculate t. (a) 176 (b) 187 (c) 195 (d) 204 (e) 212

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
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4. A loan is being amortized by means of level monthly payments at an annual nominal rate of 9%
compounded monthly. The amount of principal repaid in the 12th payment is 1000 and the
amount of principal repaid in the tth payment is 3700.
Calculate t.
(a) 176
Answer:
(b) 187
(c) 195
(d) 204
(e) 212
Transcribed Image Text:4. A loan is being amortized by means of level monthly payments at an annual nominal rate of 9% compounded monthly. The amount of principal repaid in the 12th payment is 1000 and the amount of principal repaid in the tth payment is 3700. Calculate t. (a) 176 Answer: (b) 187 (c) 195 (d) 204 (e) 212
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