Amount of loan: $ 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9 How many years will it take to pay off the loan?

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
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I just need help with the last question, the other ones have been answered. Please include the formula.

Thank you

Discount rate:
6%
End of year:
1
2
4
Cash flows:
(20,000) $
5,000 $
5,000 $
5,000 $
5,000 $
5,000
What is the Net Present Value of the cash flows?
At what discount rate is the Net Present Value "0"?
Initial outlay:
5,000
Life of investment in years:
10
Amount to be received at end:
10,000
8
Rate of return:
Amount of loan:
2$
50,000
Annual payment:
2$
10,000
Interest rate:
8%
9.
How many years will it take to pay off the loan?
3.
%24
%24
%24
%24
Transcribed Image Text:Discount rate: 6% End of year: 1 2 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? At what discount rate is the Net Present Value "0"? Initial outlay: 5,000 Life of investment in years: 10 Amount to be received at end: 10,000 8 Rate of return: Amount of loan: 2$ 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan? 3. %24 %24 %24 %24
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