John wishes to take out a loan for $4000. The interest rate on this loan would be 12% per annum and Tom wishes to make equal monthly repayments, over two years starting one month after the loan is taken out. What would be the monthly repayment on the loan to the nearest $? $160 17

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 wishes to take out a loan for $4000. The
interest rate on this loan would be 12% per annum
and Tom wishes to make equal monthly repayments,
over two years starting one month after the loan is
taken out. What would be the monthly repayment on
the loan to the nearest $?
A $169.17
B $188.29
C) $181.82
D
$166.67
Transcribed Image Text:John wishes to take out a loan for $4000. The interest rate on this loan would be 12% per annum and Tom wishes to make equal monthly repayments, over two years starting one month after the loan is taken out. What would be the monthly repayment on the loan to the nearest $? A $169.17 B $188.29 C) $181.82 D $166.67
Sydney wishes to make an investment on a monthly
basis starting next month for two years. The
payments into the fund would be made on the first
day of each month. The interest rate will be 1% per
month. Sydney needs a terminal value of $7000.
What should be the monthly payments into the fund
to the nearest $?
A $285.46
B $256.94
C
$302.68
D $259.51
Transcribed Image Text:Sydney wishes to make an investment on a monthly basis starting next month for two years. The payments into the fund would be made on the first day of each month. The interest rate will be 1% per month. Sydney needs a terminal value of $7000. What should be the monthly payments into the fund to the nearest $? A $285.46 B $256.94 C $302.68 D $259.51
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