Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Annuity Payment and
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You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan’s EFF%?
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- You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.95% interest for the rest. How much is the loan amount going to be? What will your monthly payments be?arrow_forward3.arrow_forwardYou take out a 30-year fixed rate mortgage for $160000 at 4.4% compounded monthly. a) Make a spreadsheet and calculate your monthly payment by experimentation. What is your monthly payment? $ b) You round your monthly payment up to the nearest hundred dollars. Adjust your spreadsheet. When do you pay off the loan?arrow_forward
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