You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a. $8,897.77 b. $2,799.82 c. $2,835.12 d. $3,172.00 e. $8,354.71

You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a. $8,897.77 b. $2,799.82 c. $2,835.12 d. $3,172.00 e. $8,354.71

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

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Question

You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2?

a. $8,897.77

b. $2,799.82

c. $2,835.12

d. $3,172.00

e. $8,354.71

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