You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new house. You will pay off the loan in monthly installments over two years. If you want to pay the remainder of the loan in a single payment immediately after 12th payment, how much do you have to pay?

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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You borrowed $650,000 from a bank at an interest rate of 63% compounded
quarterly to purchase a new house. You will pay off the loan in monthly installments
over two years. If you want to pay the remainder of the loan in a single payment
immediately after 12th payment, how much do you have to pay?
Transcribed Image Text:You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new house. You will pay off the loan in monthly installments over two years. If you want to pay the remainder of the loan in a single payment immediately after 12th payment, how much do you have to pay?
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