4. You want to buy a car which will be worth 350,000 after 6 years. How much should you save every year in order to buy a car? Interest is 18%.
4. You want to buy a car which will be worth 350,000 after 6 years. How much should you save every year in order to buy a car? Interest is 18%.
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. You want to buy a car which will be worth 350,000 after 6 years. How much should
you save every year in order to buy a car? Interest is 18%.
5. Your friend borrowed from you 50,000 today to be paid for 4 equal installments for
the next 4 years. If your lending rate is 12%, how much should he pay you every year?
Complete the amortization table.
Amortization Table
Amount
Payment
Debt left
Year 0
50,000.00
50,000.00
Year 1
56,000.00
Year 2
Year 3
Year 4
0.01
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