1. A loan of $2000 taken out today is to be repaid by a payment of $1200 in six monthsand a final payment of $1000. If interest is 10% compounded monthly, when shouldthe final payment be made?

Given: Loan amount = $2000 Instalment Paid after 6 months = $1200 Final Instalment = $1000 Interest…

Answered: be repaid by a payment of $1200 in six…

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be repaid by a payment of $1200 in six mo: rest is 10% compounded monthly, when she

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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1. A loan of $2000 taken out today is to be repaid by a payment of $1200 in six months
and a final payment of $1000. If interest is 10% compounded monthly, when should
the final payment be made?

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