ou buy items costing $ 3200 and will finance the cost with a fixed installment loan. You will finance at 4 % simple interest per year. You are told that your interest will amount to $320. a. How many years will you be paying? b. What will be your monthly payment

ou buy items costing $ 3200 and will finance the cost with a fixed installment loan. You will finance at 4 % simple interest per year. You are told that your interest will amount to $320. a. How many years will you be paying? b. What will be your monthly payment

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

18.

You buy items costing $ 3200 and will finance the cost with a fixed installment loan. You

will finance at 4 % simple interest per year. You are told that your interest will amount

to $320.

How many years will you be paying?

What will be your monthly payment

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