After graduation, you just got hired by an engineering company and you were planning to take a loan in order to purchase a new car. Let’s assume that the bank is willing to offer you a personal loan with an annual interest rate of 6% compounded yearly. The car price is 26,500 JD and you are capable to pay 4,200 JD per year. After how many years you will be able to pay back the loan with the accumulated interest (use a spreadsheet to answer this question) and draw the cash flow diagram.
After graduation, you just got hired by an engineering company and you were planning to take a loan in order to purchase a new car. Let’s assume that the bank is willing to offer you a personal loan with an annual interest rate of 6% compounded yearly. The car price is 26,500 JD and you are capable to pay 4,200 JD per year. After how many years you will be able to pay back the loan with the accumulated interest (use a spreadsheet to answer this question) and draw the cash flow diagram.
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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After graduation, you just got hired by an engineering company and you were planning to take a
loan in order to purchase a new car. Let’s assume that the bank is willing to offer you a personal
loan with an annual interest rate of 6% compounded yearly. The car price is 26,500 JD and you
are capable to pay 4,200 JD per year. After how many years you will be able to pay back the loan
with the accumulated interest (use a spreadsheet to answer this question) and draw the cash flow
diagram.
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