A loan of $300,000 is repayable by an annuity payable half-yearly in arrear for 20 years. The half-yearly repayment is calculated at a nominal rate of interest of 6.0% per annum convertible monthly and increases by $100 each half-year. Which of the following is the amount of the first payment? O $11,316.89 O $11,413.7 O $11,463.66 O $11,497.57 O $11,514.72 O $11,531.98 O $11,566.9 O $11,620.25 O $11,730.66

A loan of $300,000 is repayable by an annuity payable half-yearly in arrear for 20 years. The half-yearly repayment is calculated at a nominal rate of interest of 6.0% per annum convertible monthly and increases by $100 each half-year. Which of the following is the amount of the first payment? O $11,316.89 O $11,413.7 O $11,463.66 O $11,497.57 O $11,514.72 O $11,531.98 O $11,566.9 O $11,620.25 O $11,730.66

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A loan of $300,000 is repayable by an annuity payable half-yearly in arrear for 20 years. The half-yearly repayment is calculated at a
nominal rate of interest of 6.0% per annum convertible monthly and increases by $100 each half-year.
Which of the following is the amount of the first payment?
O $11,316.89
O $11,413.7
O $11,463.66
O $11,497.57
O $11,514.72
O $11,531.98
O $11,566.9
O $11,620.25
O $11,730.66

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