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ng two repayment plans for a and the debt is due in full at once. Offer 2 is to pay until the loan principal is paid off. Phil owes Tony S if he takes Offer 2? A) B) C) 9.92 years 7.27 years 5.52 years 2014 6-In (²)

ng two repayment plans for a and the debt is due in full at once. Offer 2 is to pay until the loan principal is paid off. Phil owes Tony S if he takes Offer 2? A) B) C) 9.92 years 7.27 years 5.52 years 2014 6-In (²)

Essentials Of Investments
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
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10. Tony is offering Phil two repayment plans for a long overdue loan. Offer 1 is a visit from an enforce and the debt is due in full at once. Offer 2 is to pay back $4,000 at the end of each year at 15% interest rate until the loan principal is paid off. Phil owes Tony $20,000. How long will it take for Phil to pay off the loan if he takes Offer 2? A) 201A = Po(1+r)th 9.92 years 7.27 years 5.52 years 6.64 years n = ln ( 4 ) In/190 201 AV In (1.15) 11.515
Transcribed Image Text:10. Tony is offering Phil two repayment plans for a long overdue loan. Offer 1 is a visit from an enforce and the debt is due in full at once. Offer 2 is to pay back $4,000 at the end of each year at 15% interest rate until the loan principal is paid off. Phil owes Tony $20,000. How long will it take for Phil to pay off the loan if he takes Offer 2? A) 201A = Po(1+r)th 9.92 years 7.27 years 5.52 years 6.64 years n = ln ( 4 ) In/190 201 AV In (1.15) 11.515
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