A businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year, compounded quarterly, which must be paid in quarterly installments by the French amortization system. If the interest rate is reset to 6% annually compounded quarterly after payment 16; determines the value of the new quarterly installment. 1) $2356.87 2) $5932.82 3) $6947.23 d) $5,532.76 e) $4,578.92
A businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year, compounded quarterly, which must be paid in quarterly installments by the French amortization system. If the interest rate is reset to 6% annually compounded quarterly after payment 16; determines the value of the new quarterly installment. 1) $2356.87 2) $5932.82 3) $6947.23 d) $5,532.76 e) $4,578.92
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 businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year, compounded quarterly, which must be paid in quarterly installments by the French amortization system. If the interest rate is reset to 6% annually compounded quarterly after payment 16; determines the value of the new quarterly installment.
1) $2356.87
2) $5932.82
3) $6947.23
d) $5,532.76
e) $4,578.92
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