Assume a borrower is given the following options for payment of a $100,000 loan: 5-year amortizing loan paying annual interest rates of 8%5-year non-amortizing loan with principal payment at maturity paying annual rates of 8% 5-year amortizing loan with interest payments only of 8% for years 1-3 and principal of $50,000 for years 4-5. Show the payments for all three loans, including interest and principal payments, and balances every year.
Assume a borrower is given the following options for payment of a $100,000 loan: 5-year amortizing loan paying annual interest rates of 8%5-year non-amortizing loan with principal payment at maturity paying annual rates of 8% 5-year amortizing loan with interest payments only of 8% for years 1-3 and principal of $50,000 for years 4-5. Show the payments for all three loans, including interest and principal payments, and balances every year.
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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Assume a borrower is given the following options for payment of a $100,000 loan:
5-year amortizing loan paying annual interest rates of 8%
5-year non-amortizing loan with principal payment at maturity paying annual rates of 8% 5-year amortizing loan with interest payments only of 8% for years 1-3 and principal of $50,000 for years 4-5.Show the payments for all three loans, including interest and principal payments, and balances every year.
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