firm has two simple loans : a. 150,000 €, due in 1.5 years, 8% p.a. compounded quarterly; b. 80,000 €, due in 3 years, 11% p.a. simple. Bank agrees on a replacement of those payments by one payment of 50,000 € in six months and the final
firm has two simple loans : a. 150,000 €, due in 1.5 years, 8% p.a. compounded quarterly; b. 80,000 €, due in 3 years, 11% p.a. simple. Bank agrees on a replacement of those payments by one payment of 50,000 € in six months and the final
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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A firm has two simple loans : a. 150,000 €, due in 1.5 years, 8% p.a. compounded quarterly; b. 80,000 €, due in 3 years, 11% p.a. simple. Bank agrees on a replacement of those payments by one payment of 50,000 € in six months and the final payment in a year from now. What is the amount of the final payment in a year from now if the current rate is 10%?
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