A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due?

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
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A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due?
10. A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the
loan for the amount due plus 2000 more for 2 years at 8%. What is the lump
sum due?
a. 3,260.34
b. 3,280.34
c. 3,270.34
d. 3,250.34
Transcribed Image Text:10. A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due? a. 3,260.34 b. 3,280.34 c. 3,270.34 d. 3,250.34
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