EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 4, Problem 23PROB
Summary Introduction
W has taken loan of $50,000 at 4.2% interest rate and need to make monthly payments for 10 years.
Present value of an
Here,
The present value of an annuity is “
The periodic payments are “PMT”.
The interest rate is “r”.
The maturity period of number of years is “n”.
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Students have asked these similar questions
Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He is expected to pay off his loan in 15 years. Round answer to two decimal points
a. Under the current terms of his loan what is Derricks minimum payment?
b. What is the total amount Derrick will pay when the loan is complete?
c. How much will Derrick pay in interest?
d. Derrick wants to pay more than the required monthly amount for his loan. Assuming the same conditions of the original student loan what would Derrick new monthly payment would be if he pay off loan in 10 years
e. What is the total amount Derrick will pay if they pay off the loan in 10 years?
f. With the 10 year loan how much will Derrick pay in interest?
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Chapter 4 Solutions
EBK CFIN
Ch. 4 - Prob. 1PROBCh. 4 - Prob. 2PROBCh. 4 - Prob. 3PROBCh. 4 - Prob. 4PROBCh. 4 - Prob. 5PROBCh. 4 - Prob. 6PROBCh. 4 - Prob. 7PROBCh. 4 - Prob. 8PROBCh. 4 - Prob. 9PROBCh. 4 - Prob. 10PROB
Ch. 4 - Prob. 11PROBCh. 4 - Prob. 12PROBCh. 4 - Prob. 13PROBCh. 4 - Prob. 14PROBCh. 4 - Prob. 15PROBCh. 4 - Prob. 16PROBCh. 4 - Prob. 17PROBCh. 4 - Prob. 18PROBCh. 4 - Prob. 19PROBCh. 4 - Prob. 20PROBCh. 4 - Prob. 21PROBCh. 4 - Prob. 22PROBCh. 4 - Prob. 23PROBCh. 4 - Prob. 24PROBCh. 4 - Prob. 25PROB
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