A P2000 mortgage was specifically built for four years at a rate of simple interest of 8% . The mortgage was extended for a further three years, with out any interest, for a total of four years. The interest rate was set at 10% compounded semi-annually at the end of this period. In the first four years, how much should the borrower pay and How much should the borrower pay at the end of 7 years?
A P2000 mortgage was specifically built for four years at a rate of simple interest of 8% . The mortgage was extended for a further three years, with out any interest, for a total of four years. The interest rate was set at 10% compounded semi-annually at the end of this period. In the first four years, how much should the borrower pay and How much should the borrower pay at the end of 7 years?
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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A P2000 mortgage was specifically built for four years at a rate of simple interest of 8% . The mortgage was extended for a further three years, with out any interest, for a total of four years. The interest rate was set at 10% compounded semi-annually at the end of this period. In the first four years, how much should the borrower pay and How much should the borrower pay at the end of 7 years?
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