A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
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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A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
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