Answered: Maalaga borrowed a three-year loan for…

Maalaga borrowed a three-year loan for 80,000. If the debt a erest at a rate of 8% per month compounded, and the first paym e end of the fourth month, how much should he pay each month?

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 25E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

100%

2. Maalaga borrowed a three-year loan for 80,000. If the debt accumulates
interest at a rate of 8% per month compounded, and the first payment is due at
the end of the fourth month, how much should he pay each month?

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