Answered: Ms. C took a loan of $150,000 at a rate…

Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at the end of each year. In how many years she can repay the loan if?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

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Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at the end of each year. In how many years she can repay the loan if? Required: Calculate the approximate number of years over which she can repay the loan amount. Answer: Show Work:
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