7. The CFO has negotiated a cheaper deal with mCommerceBank, a competitior of eCommerceBanque. The bank has agreed to provide loan of $2102, for 1 year and the payments are required to be paid monthly (at the end). The annualized interest rate charged by the bank is 9% pa. Compute the monthly payment amount to be made to the mCommerceBank. (i) Enter the values of number of periods, Present Value and Type in cells C43, C46 and C48 respectively. (ii) Write a formula in cell C45 to convert the annual rate to monthly interest rate. (iii) Write a formula in cell C50 to compute the monthly payments to be made to the bank.

7. The CFO has negotiated a cheaper deal with mCommerceBank, a competitior of eCommerceBanque. The bank has agreed to provide loan of $2102, for 1 year and the payments are required to be paid monthly (at the end). The annualized interest rate charged by the bank is 9% pa. Compute the monthly payment amount to be made to the mCommerceBank. (i) Enter the values of number of periods, Present Value and Type in cells C43, C46 and C48 respectively. (ii) Write a formula in cell C45 to convert the annual rate to monthly interest rate. (iii) Write a formula in cell C50 to compute the monthly payments to be made to the bank.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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