you borrow $20,000 from a bank to be repaid in three equal annual instalment at 9% interest compounded annually. What is the portion of interest payment for the 2nd annual payment? Select one: A 510 B. 1089 C. 549 D. 1251 E. 1800

you borrow $20,000 from a bank to be repaid in three equal annual instalment at 9% interest compounded annually. What is the portion of interest payment for the 2nd annual payment? Select one: A 510 B. 1089 C. 549 D. 1251 E. 1800

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

you borrow $20,000 from a bank to be repaid in three equal annual
instalment at 9% interest compounded annually. What is the portion of
interest payment for the 2nd annual payment?
Select one:
A 510
B. 1089
C. 549
D. 1251
E. 1800

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