Required information A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. Consider a 6-year loan of $10,000 at 15% per year. If interest is charged on the unrecovered balance, what equal annual payment would be required to complete the repayment of the loan in 6 years?

Required information A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. Consider a 6-year loan of $10,000 at 15% per year. If interest is charged on the unrecovered balance, what equal annual payment would be required to complete the repayment of the loan in 6 years?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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