Megan's dad is ready to lend her money at 4.9% interest per year for 3 years of college; however he would like Megan to pay him $1,600 a year at the end of each year. Megan thinks that on getting her first job after 3 years she will get a joining bonus of $28,000. She would like to borrow as much money as possible from her dad that can be paid off with the bonus amount. How much should she borrow?

Megan's dad is ready to lend her money at 4.9% interest per year for 3 years of college; however he would like Megan to pay him $1,600 a year at the end of each year. Megan thinks that on getting her first job after 3 years she will get a joining bonus of $28,000. She would like to borrow as much money as possible from her dad that can be paid off with the bonus amount. How much should she borrow?

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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Similar questions

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It is Jerry's 14th birthday and his parents plan to invest some money so that they will have $17 000 on Jerry's 18th birthday for his post-secondary education. They invest in an RESP that pays 8.6% per year, compounded quarterly. How much money must Jerry's parents invest now to reach their goal?

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