You lend a friend 100000 NOK so that your friend can make a long term invest- ment in Bitcoin. The loan is given as an annuity loan over 3 years with annual payments. You charge your friend an interest rate 20%. a) Compute the annual payment. b) How much of the first payment is interests, and how much is installment? (you can give both your answer in NOK or in % of the payment). c) Just before your friend is supposed to pay his third repayment he/she losses all his/her money invested in Bitcoin. Your friend is bankrupt and can not pay you back the remainder of the loan. What is the present value of the remaining loan that you loose at that moment in time?
You lend a friend 100000 NOK so that your friend can make a long term invest- ment in Bitcoin. The loan is given as an annuity loan over 3 years with annual payments. You charge your friend an interest rate 20%. a) Compute the annual payment. b) How much of the first payment is interests, and how much is installment? (you can give both your answer in NOK or in % of the payment). c) Just before your friend is supposed to pay his third repayment he/she losses all his/her money invested in Bitcoin. Your friend is bankrupt and can not pay you back the remainder of the loan. What is the present value of the remaining loan that you loose at that moment in time?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:You lend a friend 100000 NOK so that your friend can make a long term invest-
ment in Bitcoin. The loan is given as an annuity loan over 3 years with annual
payments. You charge your friend an interest rate 20%.
a) Compute the annual payment.
b) How much of the first payment is interests, and how much is installment?
(you can give both your answer in NOK or in % of the payment).
c) Just before your friend is supposed to pay his third repayment he/she losses
all his/her money invested in Bitcoin. Your friend is bankrupt and can not
pay you back the remainder of the loan. What is the present value of the
remaining loan that you loose at that moment in time?
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