ou've just taken out a student loan with a quoted interest rate of 4.1%. You will have to pay back $1,600 in 19 years, with no intermediate payments necessary. A. How much did you borrow if interest is compounded monthly? B. How much did you borrow if interest is compounded daily?
ou've just taken out a student loan with a quoted interest rate of 4.1%. You will have to pay back $1,600 in 19 years, with no intermediate payments necessary. A. How much did you borrow if interest is compounded monthly? B. How much did you borrow if interest is compounded daily?
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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You've just taken out a student loan with a quoted interest rate of 4.1%. You will have to pay back $1,600 in 19 years, with no intermediate payments necessary.
A. How much did you borrow if interest is compounded monthly?
B. How much did you borrow if interest is compounded daily?
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