a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...
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Question
![A person borrows an amount for a new house and
s/he is going to make monthly payments of 8,000
$ for the next 10 years. The nominal annual
interest rate is quoted as 12%. (Assume the first
instalment is going to be paid 1 month after s/he
borrows.)
a. Find the amount borrowed by this person.
b. How much does this credit worth at the end of
the last payment date?
c.lf this person decides on closing his/her loan
after paying the 34th instalment, how much
should s/he pay? It is given that the closing fee of
this credit is 1,453 $.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dfea60c-e4f4-4d04-9982-3c2e33a1c59a%2Fa40ff66b-a7ca-45ab-86bd-c693d0cc1a2c%2F7bv3wvm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A person borrows an amount for a new house and
s/he is going to make monthly payments of 8,000
$ for the next 10 years. The nominal annual
interest rate is quoted as 12%. (Assume the first
instalment is going to be paid 1 month after s/he
borrows.)
a. Find the amount borrowed by this person.
b. How much does this credit worth at the end of
the last payment date?
c.lf this person decides on closing his/her loan
after paying the 34th instalment, how much
should s/he pay? It is given that the closing fee of
this credit is 1,453 $.
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