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
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Transcribed Image Text: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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