This question is divided into 2 small questions but cover the same topic. 1) A vacation property valued at $28,000 was bought for 240 payments of $220 due at the end of every month. What nominal annual rate of interest compounded semi-annually was charged? 2) A vacation property valued at $44,000 was bought for 100 payments of $1200 due at the end of every 3 months. What nominal annual rate of interest compounded monthly was charged?
This question is divided into 2 small questions but cover the same topic. 1) A vacation property valued at $28,000 was bought for 240 payments of $220 due at the end of every month. What nominal annual rate of interest compounded semi-annually was charged? 2) A vacation property valued at $44,000 was bought for 100 payments of $1200 due at the end of every 3 months. What nominal annual rate of interest compounded monthly was charged?
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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This question is divided into 2 small questions but cover the same topic.
1) A vacation property valued at $28,000 was bought for 240 payments of $220 due at the end of every month. What nominal annual rate of interest compounded semi-annually was charged?
2) A vacation property valued at $44,000 was bought for 100 payments of $1200 due at the end of every 3 months. What nominal annual rate of interest compounded monthly was charged?
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