estion Two Ms. Duke is borrowing 12,000 at a compound annual interest rate of 17%. Determine the annual payment to amortize the loan, if she is offered 7 years. 1. At 8% compounded annually, how long will it take $750 to double? A friend plans to buy a big-screen TV/entertainment system and can afford to set aside 1,320 toward the purchase today. If your friend can earn 15%, compounded yearly, how much can your friend spend in four years on the purchase?

estion Two Ms. Duke is borrowing 12,000 at a compound annual interest rate of 17%. Determine the annual payment to amortize the loan, if she is offered 7 years. 1. At 8% compounded annually, how long will it take $750 to double? A friend plans to buy a big-screen TV/entertainment system and can afford to set aside 1,320 toward the purchase today. If your friend can earn 15%, compounded yearly, how much can your friend spend in four years on the purchase?

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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Question 1 A family has a 30-year $880, 000 mortgage at 8% compounded monthly. (1) Find the monthly payment and the total interest paid (2) After 10 years, suppose the family decides to add an extra $150 to its mortgage payment each month. How long will it take the family to pay off the remain mortgage? (3) How much interest will the family save?
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