Red Lions Corporation takes out a $8.6 million short-term amortizing loan for nine months at 11.4% per annum. It makes monthly payments to pay off the loan. However, after completing 5 months of repayments, it decides to payoff early the remaining part of the loan amount. Q1. How much are the monthly repayment (in millions of dollars)? millions. (Give answer to 4 decimal places) $ Q2. How much does it repay to payoff the remaining part of the loan (in millions of dollars)? $ millions. (Give answer to 4 decimal places)
Red Lions Corporation takes out a $8.6 million short-term amortizing loan for nine months at 11.4% per annum. It makes monthly payments to pay off the loan. However, after completing 5 months of repayments, it decides to payoff early the remaining part of the loan amount. Q1. How much are the monthly repayment (in millions of dollars)? millions. (Give answer to 4 decimal places) $ Q2. How much does it repay to payoff the remaining part of the loan (in millions of dollars)? $ millions. (Give answer to 4 decimal places)
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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![Red Lions Corporation takes out a $8.6 million short-term amortizing loan for
nine months at 11.4% per annum. It makes monthly payments to pay off the loan.
However, after completing 5 months of repayments, it decides to payoff early the
remaining part of the loan amount.
Q1. How much are the monthly repayment (in millions of dollars)?
millions. (Give answer to 4 decimal places)
$
Q2. How much does it repay to payoff the remaining part of the loan (in millions of
dollars)?
$
millions. (Give answer to 4 decimal places)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17b90f00-563b-4d1a-95d0-7b0f8877efb3%2Fe348ad13-8949-47d1-b5b5-1756a4c087db%2Fy8xjabj_processed.png&w=3840&q=75)
Transcribed Image Text:Red Lions Corporation takes out a $8.6 million short-term amortizing loan for
nine months at 11.4% per annum. It makes monthly payments to pay off the loan.
However, after completing 5 months of repayments, it decides to payoff early the
remaining part of the loan amount.
Q1. How much are the monthly repayment (in millions of dollars)?
millions. (Give answer to 4 decimal places)
$
Q2. How much does it repay to payoff the remaining part of the loan (in millions of
dollars)?
$
millions. (Give answer to 4 decimal places)
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