A loan of $1,000 is to be repaid with annual payments of $50, $100, $1,000 and P at the end of the 1st, 2nd, 3rd, and 4th year. The interest rate is 10% per annum. Construct and amortization schedule for the loan and determine P.
A loan of $1,000 is to be repaid with annual payments of $50, $100, $1,000 and P at the end of the 1st, 2nd, 3rd, and 4th year. The interest rate is 10% per annum. Construct and amortization schedule for the loan and determine P.
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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5.31 A loan of $1,000 is to be repaid with annual payments of $50, $100, $1,000 and P at the end of the 1st, 2nd, 3rd, and 4th year. The interest rate is 10% per annum. Construct and amortization schedule for the loan and determine P.
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