When Albertina opened her law office, she bought $19,000 worth of law books and $7600 worth of furniture. She paid $1300 down and agreed to amortize the balance with semiannual payments for 5 years at 11% compounded semiannually. Find the amount of each payment. Then use the formula for the remaining balance to find the number of remaining payments when the loan has been reduced below $12,000 What is the amount of each payment?

When Albertina opened her law office, she bought $19,000 worth of law books and $7600 worth of furniture. She paid $1300 down and agreed to amortize the balance with semiannual payments for 5 years at 11% compounded semiannually. Find the amount of each payment. Then use the formula for the remaining balance to find the number of remaining payments when the loan has been reduced below $12,000 What is the amount of each payment?

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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While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of $320 for the next 3 years and 6 months. She was charged an interest rate of 4% compounded semi-annually for the entire term. a. What was the purchase price of the car? b. What was the total amount of interest paid over the term? Since the birth of her daughter, 18 years ago, Jeremy has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.00% compounded monthly for the first 9 years and 3.60% compounded monthly for the next 9 years. a. Calculate the value of the fund today (the end of a 18-year term). b. How much of this is interest?
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