A loan of $10500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 4 1/2 years interest is at 0.047 effective; for the remainder of the term interest is at 0.078 effective. Find amount of the first payment.
A loan of $10500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 4 1/2 years interest is at 0.047 effective; for the remainder of the term interest is at 0.078 effective. Find amount of the first payment.
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 loan of $10500 is to be repaid by 10 annual payments beginning 6
months from the date of the loan. The first payment is to be half as large
as the others. For the first 4 1/2 years interest is at 0.047 effective; for the
remainder of the term interest is at 0.078 effective. Find amount of the first
payment.
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