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1. (15) John had an loan plan shown in the following discrete cash flow diagram: $4,000 $6,000 GI $2,000 5 7 1 2 3 4 $3,000 $4,000 ? Years a. Please describe this diagram in terms of borrowing and payback. b. How much does John need to pay to totally payoff the loan at the end of year 8 if the interest rate is 8%? c. If John pays the sam amount of money at year 8, how much can John borrow at year 0 without paying back in between with the same interest rate?

1. (15) John had an loan plan shown in the following discrete cash flow diagram: $4,000 $6,000 GI $2,000 5 7 1 2 3 4 $3,000 $4,000 ? Years a. Please describe this diagram in terms of borrowing and payback. b. How much does John need to pay to totally payoff the loan at the end of year 8 if the interest rate is 8%? c. If John pays the sam amount of money at year 8, how much can John borrow at year 0 without paying back in between with the same interest rate?

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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1. (15) John had an loan plan shown in the following discrete cash flow diagram: $4,000 $6,000 GI $2,000 5 7 1 2 3 4 $3,000 $4,000 ? Years a. Please describe this diagram in terms of borrowing and payback. b. How much does John need to pay to totally payoff the loan at the end of year 8 if the interest rate is 8%? c. If John pays the sam amount of money at year 8, how much can John borrow at year 0 without paying back in between with the same interest rate?
Transcribed Image Text:1. (15) John had an loan plan shown in the following discrete cash flow diagram: $4,000 $6,000 GI $2,000 5 7 1 2 3 4 $3,000 $4,000 ? Years a. Please describe this diagram in terms of borrowing and payback. b. How much does John need to pay to totally payoff the loan at the end of year 8 if the interest rate is 8%? c. If John pays the sam amount of money at year 8, how much can John borrow at year 0 without paying back in between with the same interest rate?
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