On 1 January 2002, Rs 500,000 was borrowed by Mr Needy from a bank for a period of 10 years at a fixed annual rate of interest of 12%. Mr Needy will reimburse interest and principal by equal annual payments. Calculate the annual payment if:(a) The first annual payment is effected on 31 December 2002.(b) The first annual payment is effected on 1 January 2002.
On 1 January 2002, Rs 500,000 was borrowed by Mr Needy from a bank for a period of 10 years at a fixed annual rate of interest of 12%. Mr Needy will reimburse interest and principal by equal annual payments. Calculate the annual payment if:(a) The first annual payment is effected on 31 December 2002.(b) The first annual payment is effected on 1 January 2002.
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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On 1 January 2002, Rs 500,000 was borrowed by Mr Needy from a bank for a period of 10 years at a fixed annual rate of interest of 12%. Mr Needy will reimburse interest and principal by equal annual payments. Calculate the annual payment if:
(a) The first annual payment is effected on 31 December 2002.
(b) The first annual payment is effected on 1 January 2002.
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