John borrowed $35,000 from a bank at 12 percent semiannually compounded interest to be repaid in 5 years . Calculate the total interest paid in the 4th year.
John borrowed $35,000 from a bank at 12 percent semiannually compounded interest to be repaid in 5 years . Calculate the total interest paid in the 4th year.
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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3. John borrowed $35,000 from a bank at 12 percent semiannually
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Step 1
John has borrowed $35000 for 5 years at 12% compounded semi-annually. Therefore, amount he is paying for the loan every six months is calculated as below:
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