Mrs. Martha bought a screen that has a cash price of $ 18,000. She made the purchase on credit, paying 6 monthly installments with an interest rate of 36% per year. Using the constant amortization method ... a. Complete the amortization table b. Calculate the total amount paid for the credit

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
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Mrs. Martha bought a screen that has a cash price of $ 18,000. She made the purchase on credit, paying 6 monthly installments with an interest rate of 36% per year. Using the constant amortization method ...

a. Complete the amortization table

b. Calculate the total amount paid for the credit

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Step 1

Borrowings are the liability that is used to finance the requirement of the funds. The borrower needs to pay annual payment against the borrowings. The annual payment will reduce the amount of cash flows generated during the period.

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