Bank with an interest of 12% compounded annually. You can pay off the debt in 4 years by paying $310 in year one and then increasing the money by $80 next years. Using the payment mentioned above, how much did you borrow from the bank?
Bank with an interest of 12% compounded annually. You can pay off the debt in 4 years by paying $310 in year one and then increasing the money by $80 next years. Using the payment mentioned above, how much did you borrow from the bank?
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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you borrowed a money from a Bank with an interest of 12% compounded annually. You can pay off the debt in 4 years by paying $310 in year one and then increasing the money by $80 next years. Using the payment mentioned above, how much did you borrow from the bank? Check your answer with interest table which calculate the increase/decrease for each year
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