Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments for 3 years. Unfortunately she was unable to make any payments. At the end of the first year, the bank restructured the loan and required her to pay the amount due for one year immediately and the remaining balance was to be paid in two equal annual payments at the end of 2nd and 3rd year. What are the amounts of payments she made?

Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments for 3 years. Unfortunately she was unable to make any payments. At the end of the first year, the bank restructured the loan and required her to pay the amount due for one year immediately and the remaining balance was to be paid in two equal annual payments at the end of 2nd and 3rd year. What are the amounts of payments she made?

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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Rih took out a 4-year amortized loan for $15,000 at 10% to pay her tuition at a music conservatory. After 1 year, she refinanced the unpaid balance of $11,791 at a 5% interest rate. Find the monthly payments on the new loan; and the total amount saved on interest by refinancing. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are $ (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $
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Kim borrowed money from a bank to buy a fishing boat. He took out a personal, amortized loan for $18,500 , at an interest rate of 5.9%, with monthly payments for a term of 6 years Find Joe's monthly payment. (b) If Joe pays the monthly payment each month for the full term, find his total amount to repay the loan. (c) If Joe pays the monthly payment each month for the full term, find the total amount of interest he will pay. Please answer all subparts with explanation. I will really upvote. Thanks

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