A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after eight years. Interest is 9% compounded monthly for the first two years, 10% compounded annually for the next two years, and 10% compounded quarterly thereafter. What is the size of the final payment? The final payment is $ Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after eight years. Interest is 9% compounded monthly for the first two years, 10% compounded annually for the next two years, and 10% compounded quarterly thereafter. What is the size of the final payment? The final payment is $ Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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:A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after eight years. Interest is 9% compounded monthly for the first two years, 10% compounded annually for the next
two years, and 10% compounded quarteriy thereafter. What is the size of the final payment?
The final payment is $.
(Round the final answer to the nearest cent as neoded. Round all intermediate values to six decimal places
sneeded.)
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