Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of the loan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annually hasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of the payment was exactly $1,000.
Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of the loan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annually hasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of the payment was exactly $1,000.
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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Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of the
loan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annually
hasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of the
payment was exactly $1,000.
a. What is Marie’s monthly payment?
b. How much did Boris originally borrow
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