Personal Finance Pro odi 5-9 Single-payment loan repayment Kelly borrows $30,000 business in Hong Kong, that she must repay in a lump s The interest rate is 10% annually compounded. There is a. What amount will be due if she decides to repay the b. How much would she have to repay after 5 years? c. What amount is due at the end of 8 years?
Personal Finance Pro odi 5-9 Single-payment loan repayment Kelly borrows $30,000 business in Hong Kong, that she must repay in a lump s The interest rate is 10% annually compounded. There is a. What amount will be due if she decides to repay the b. How much would she have to repay after 5 years? c. What amount is due at the end of 8 years?
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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Transcribed Image Text:T TWO Financial ToolsAHD
oldagni Personal Finance Problem datoesulov prost
limp5-9 Single-payment loan repayment Kelly borrows $30,000, to start a motor repair
business in Hong Kong, that she must repay in a lump sum within the next 9 years.
The interest rate is 10% annually compounded. There is no prepayment penalty.
a. What amount will be due if she decides to repay the loan after 2 years?
b. How much would she have to repay after 5 years?
boinoq sizoga
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c. What amount is due at the end of 8 years?
P5-10 Present value calculation Without referring to the preprogrammed function on your
financial calculator, use the basic formula for present value, along with the given
discount rate, r, and the number of periods, n, to calculate the present value of $1 in
each of the cases shown in the following table.
2
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meldo19 sonsni
Discount rate, r
Case
2 16 1006 agnivse s ni 19
Number of periods, n
4
A
2% lisunns
babnuod
10
i 2
C
5
3
Gay S(B) Ted Bal
2
indicatos problems
gnibnit uoy seU
& 1169 01
1291910i to inwoms 91 91sluples
besvartedt (5) (5:07 | 278910) exspy Sating a new
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