b) Mario borrows money from his bank who charges an interest of 4% p.a. effective. Mario has the following options to repay his loan: Option 1: To repay $2,000 in 4 years and $6,000 in 9 years. Option 2: To make a single repayment of X in 6 years. Calculate X. Round your answer to the nearest cent
b) Mario borrows money from his bank who charges an interest of 4% p.a. effective. Mario has the following options to repay his loan: Option 1: To repay $2,000 in 4 years and $6,000 in 9 years. Option 2: To make a single repayment of X in 6 years. Calculate X. Round your answer to the nearest cent
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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![b) Mario borrows money from his bank who charges an interest of 4% p.a. effective. Mario has the following
options to repay his loan:
Option 1: To repay $2,000 in 4 years and $6,000 in 9 years,
Option 2: To make a single repayment of X in 6 vears.
Calculate X. Round your answer to the nearest cent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b5a4f4d-6fa2-4cfd-989c-712c01056efe%2F30ad2b7d-f8b1-45a9-888e-ee86bbddfa90%2F2ewrmpq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b) Mario borrows money from his bank who charges an interest of 4% p.a. effective. Mario has the following
options to repay his loan:
Option 1: To repay $2,000 in 4 years and $6,000 in 9 years,
Option 2: To make a single repayment of X in 6 vears.
Calculate X. Round your answer to the nearest cent
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