Peter takes out a loan of R1000000 to start a new business. After 14 years his business grows and he borrows a further R200000 to build a storage warehouse . The bank offers him an interest rate of 11,2% p.a compounded monthly and it is agreed that he will pay back R1000000 after 7 years and settle the remainder of loan 3 years later . What will his final payment be to settle a loan ?

Peter takes out a loan of R1000000 to start a new business. After 14 years his business grows and he borrows a further R200000 to build a storage warehouse . The bank offers him an interest rate of 11,2% p.a compounded monthly and it is agreed that he will pay back R1000000 after 7 years and settle the remainder of loan 3 years later . What will his final payment be to settle a loan ?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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