4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% convertible monthly. If the interest paid in the 45 monthly installment is $424.45, calculate number of years (or months) of the original loan and the total amount of interest paid over the life of the loan.
4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% convertible monthly. If the interest paid in the 45 monthly installment is $424.45, calculate number of years (or months) of the original loan and the total amount of interest paid over the life of the loan.
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
Problem 1PS
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Transcribed Image Text:4) An n-year loan involves payments of $800 at the end of each month. The interest
rate is 12% convertible monthly. If the interest paid in the 45" monthly installment is
$424.45, calculate number of years (or months) of the original loan and the total
amount of interest paid over the life of the loan.
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