A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.

A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.

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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A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.

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