Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His banker encouraged him to put other expenses into the loan if he wished, so he increased the loan in order to purchase furniture, a new car, and a computer. Suppose the computer cost $1,500. Assume that the loan is an add on loan to calculate parts a. and b. a. What was the amount of interest that he paid on the computer part of his loan? b. What was the total cost of his computer?
Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His banker encouraged him to put other expenses into the loan if he wished, so he increased the loan in order to purchase furniture, a new car, and a computer. Suppose the computer cost $1,500. Assume that the loan is an add on loan to calculate parts a. and b. a. What was the amount of interest that he paid on the computer part of his loan? b. What was the total cost of his computer?
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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Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His banker encouraged
him to put other expenses into the loan if he wished, so he increased the loan in order to purchase furniture, a new car, and
a computer. Suppose
the computer cost $1,500. Assume that the loan is an add on loan to calculate parts a. and b.
a. What was the amount of interest that he paid on the computer part of his loan?
b. What was the total cost of his computer?
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