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

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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