John borrows money from a bank. Interest rate is 9.5%pa compounded half yearly. He has

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
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John borrows money from a
bank. Interest rate is 9.5%pa
compounded half yearly. He has
2 options to repay the loan: A:
repay $5000 in 5 years and $
5000 in 8 years B: make a single
repayment of x in 7 years. Two
options are equivalent. Calculate
X using Excel TVM function.
Transcribed Image Text:John borrows money from a bank. Interest rate is 9.5%pa compounded half yearly. He has 2 options to repay the loan: A: repay $5000 in 5 years and $ 5000 in 8 years B: make a single repayment of x in 7 years. Two options are equivalent. Calculate X using Excel TVM function.
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