qual end of year payments of $263.80 each are being made on a $1,000 loan at 15% per year compounded monthly. a. How many payments are required to repay the entire loan? b. Immediately after the third payment, what lump sum amount would completely pay off the loan? INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE TO 5 DECIMAL PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.

qual end of year payments of $263.80 each are being made on a $1,000 loan at 15% per year compounded monthly. a. How many payments are required to repay the entire loan? b. Immediately after the third payment, what lump sum amount would completely pay off the loan? INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE TO 5 DECIMAL PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.

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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