Patricia Graham is planning on going to the university. To finance her education, her bank has agreed to lend her $125,000 on the first day of each year for the next three years beginning January 1, 2011. The annual interest rate of 10% is compounded yearly. Patricia plans to graduate on December 31, 2013. What will be the amount owing to the bank on that date?
Patricia Graham is planning on going to the university. To finance her education, her bank has agreed to lend her $125,000 on the first day of each year for the next three years beginning January 1, 2011. The annual interest rate of 10% is compounded yearly. Patricia plans to graduate on December 31, 2013. What will be the amount owing to the bank on that date?
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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Patricia Graham is planning on going to the university. To finance her education, her bank has agreed to lend her $125,000 on the first day of each year for the next three years beginning January 1, 2011. The annual interest rate of 10% is compounded yearly. Patricia plans to graduate on December 31, 2013. What will be the amount owing to the bank on that date?
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