Suppose you are paying off a $1,200 loan by paying $400 in principal repayment each year plus 10% yearly interest over a 3-year period. What is the total payment (interest plus principal) in the third year? Multiple choice question. $800 $400 $1,320 $440

Suppose you are paying off a $1,200 loan by paying $400 in principal repayment each year plus 10% yearly interest over a 3-year period. What is the total payment (interest plus principal) in the third year? Multiple choice question. $800 $400 $1,320 $440

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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$400

$1,320

$440

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