Question No.28 Josephine took out a 20-year loan of 100,000 at an interest rate of 8% convertible quarterly. She will make level quarterly payments of X, starting 3 months after the original loan date. With the 20th payment, she will add an extra 10,000. Josephine will pay off the loan exactly with the last quarterly payment of X at the end of 20 years. Calculate X. A. 2,264 В. 2,347 C. 2,498 D. 2,516 E. 9,167
Question No.28 Josephine took out a 20-year loan of 100,000 at an interest rate of 8% convertible quarterly. She will make level quarterly payments of X, starting 3 months after the original loan date. With the 20th payment, she will add an extra 10,000. Josephine will pay off the loan exactly with the last quarterly payment of X at the end of 20 years. Calculate X. A. 2,264 В. 2,347 C. 2,498 D. 2,516 E. 9,167
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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please solve these two problems without using excel and show all steps.
help me fast so that I will give good rating.
Transcribed Image Text:Question No.28
Josephine took out a 20-year loan of 100,000 at an interest rate of 8% convertible quarterly. She
will make level quarterly payments of X, starting 3 months after the original loan date. With the
20th payment, she will add an extra 10,000. Josephine will pay off the loan exactly with the last
quarterly payment of X at the end of 20 years.
Calculate X.
A. 2,264
В. 2,347
C. 2,498
D. 2,516
E. 9,167
Question No.29
Karl borrows $200,000 on January 1, 2017 to be repaid in 30 annual installments at an effective
annual rate of interest of 6%. The first payment is due on January 1, 2020. Instead of annual
payments she decides to make monthly payments equal to one-twelfth the annual payment
beginning on July 1, 2020.
Determine how many months will be needed to pay off the loan.
A. 423
В. 424
С. 425
D. 426
E. 427
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