1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal monthly installments which all start at the beginning of each period. determine the monthly payment. (Show solution) a. 7,855 b. 5,875 c. 5,587 d.8,755

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal monthly installments which all start at the beginning of each period. determine the monthly payment. (Show solution)

a. 7,855

b. 5,875

c. 5,587

d.8,755

2. A car was baught on an installment basis with a monthly installment of 30,000 for 60 months. If the rate is 1.2% compounded annually, calculate the cash prize of the car. (Show solution)

a. 1,396,619

b. 1,693,619

c. 1,379,619

d. 1,367,634

 

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