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Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the balance. If she made equal monthly payments of $1650 at 4.95% compounded semi-annually, how long will it take to pay off the loan? (Give your answer in years and months) I Uu Ay ... Format PMT Setting VY +

Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the balance. If she made equal monthly payments of $1650 at 4.95% compounded semi-annually, how long will it take to pay off the loan? (Give your answer in years and months) I Uu Ay ... Format PMT Setting VY +

Essentials Of Investments
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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1. Kali would like to save up $5000 over the next 6 years and 6 months. a) How much should she deposit at the end of every 3 months into an account earning jı2 = 4.9%? b) How much interest will she earn? BGN END N 4 x 6.5 = 26 %3! I/Y 4.9 a) PMT $164.36 P/Y 4 b) I = $5000 - 26 x $164.36 = $5000 - $4273.36 $726.64 C/Y 12 PV PMT -164.3640... FV 5000
Transcribed Image Text:1. Kali would like to save up $5000 over the next 6 years and 6 months. a) How much should she deposit at the end of every 3 months into an account earning jı2 = 4.9%? b) How much interest will she earn? BGN END N 4 x 6.5 = 26 %3! I/Y 4.9 a) PMT $164.36 P/Y 4 b) I = $5000 - 26 x $164.36 = $5000 - $4273.36 $726.64 C/Y 12 PV PMT -164.3640... FV 5000
Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the balance. If she made equal monthly payments of $1650 at 4.95% compounded semi-annually, how long will it take to pay off the loan? (Give your answer in years and months) I U A B + v ... Format PMT Setting I/Y P/Y
Transcribed Image Text:Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the balance. If she made equal monthly payments of $1650 at 4.95% compounded semi-annually, how long will it take to pay off the loan? (Give your answer in years and months) I U A B + v ... Format PMT Setting I/Y P/Y
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