2 Maula-pae Weaks urgently needed $100,000 to pay lawyer-fees after illegally withdrawing a letter, and was forcedto borrow at 15% nominal from Krowley Kash-pit. Loan conditions were: monthly compounding, and repay withequal monthly payments over 3 years. Mr. Weaks wins a Quick-pick Cash-pot after the initial 12 payments, andwants to now pay off the remainder in uniform quarterly payments over the remaining 2 years; the original 15%nominal interest compounded monthly still applies. Determine the quarterly-payment amount.

First we need to calculate size of monthly payment PMT =PV*i1-1(1+i)n where PV =loan amount…

Answered: Maula pae Weaks urgently needed…

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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Angelica received a 12-year non-subsidized student loan of $14,000 at an annual interest rate of 5.3% (compounded monthly). She will begin repaying the loan after she graduates in 4 years. How much interest must she pay on the loan during the period of time that payments on the loan are not being made? (Round your answer to the nearest cent.) $ Determine her monthly payment on the loan.
Maula-pae Weaks urgently needed $100,000 to pay lawyer-fees after illegally withdrawing a letter, and was forced to borrow at 15% nominal from Krowley Kash-pit. Loan conditions were: monthly compounding, and repay with equal monthly payments over 3 years. Mr. Weaks wins a Quick-pick Cash-pot after the initial 12 payments, and wants to now pay off the remainder in uniform quarterly payments over the remaining 2 years; the original 15% nominal interest compounded monthly still applies. Determine the quarterly-payment amount.
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