Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of /2=4.91% p.a. She will make 10 annual repayments. According to the loan agreement, Emily's repayments will be $85 000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (b) Assume that all annual repayments will be paid at the beginning of each year (the first payment will be at the start of the first year), what is the value of Emily's annual payment amount, X (rounded to four decimal places)? Question 7Answer a. 135292.7968 b. 134878.1436 C. 128565.5739 d. 128886.7757
Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of /2=4.91% p.a. She will make 10 annual repayments. According to the loan agreement, Emily's repayments will be $85 000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (b) Assume that all annual repayments will be paid at the beginning of each year (the first payment will be at the start of the first year), what is the value of Emily's annual payment amount, X (rounded to four decimal places)? Question 7Answer a. 135292.7968 b. 134878.1436 C. 128565.5739 d. 128886.7757
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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Transcribed Image Text:Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of
/2=4.91% p.a. She will make 10 annual repayments. According to the loan
agreement, Emily's repayments will be $85 000 for the first two years followed by
payments of X per year for the remaining eight years. This loan needs to be fully
repaid by the end of 10 years.
(b) Assume that all annual repayments will be paid at the beginning of each year
(the first payment will be at the start of the first year), what is the value of Emily's
annual payment amount, X (rounded to four decimal places)?
Question 7Answer
a.
135292.7968
b.
134878.1436
C.
128565.5739
d.
128886.7757
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