Lorena's Cart took out a loan from the bank today for $245,800.00. The loan requires Lorena's Cart to make a special payment of $82,400.00 to the bank in 3 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 9.60 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? O $15,686.40 (plus or minus 3 dollars) O $62,588.64 (plus or minus 3 dollars) O $17,588.29 (plus or minus 3 dollars) O $23,596.80 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer

Lorena's Cart took out a loan from the bank today for $245,800.00. The loan requires Lorena's Cart to make a special payment of $82,400.00 to the bank in 3 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 9.60 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? O $15,686.40 (plus or minus 3 dollars) O $62,588.64 (plus or minus 3 dollars) O $17,588.29 (plus or minus 3 dollars) O $23,596.80 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer

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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Concept explainers

Calculating the Return On A Loan

Question

Lorena's Cart took out a loan from the bank today for $245,800.00. The loan requires Lorena's Cart to make a special payment of $82,400.00 to the bank in 3
years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 9.60 percent per year and the first regular,
fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment?
O $15,686.40 (plus or minus 3 dollars)
O $62,588.64 (plus or minus 3 dollars)
O $17,588.29 (plus or minus 3 dollars)
O $23,596.80 (plus or minus 3 dollars)
O none of the answers are within 3 dollars of the correct answer

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