x is the last digit of your student number 1. You want to buy a new house which is sold for TL x00000 cash. The seller offers you chance to make half of the payment now and the other half in four annual installments with an interest rate of 10%. Compute the amount of each payment. Fill in the amortization table below. (Use the factors below to calculate the payment. Show all your calculations. Do not use the equal payment formula.)
x is the last digit of your student number 1. You want to buy a new house which is sold for TL x00000 cash. The seller offers you chance to make half of the payment now and the other half in four annual installments with an interest rate of 10%. Compute the amount of each payment. Fill in the amortization table below. (Use the factors below to calculate the payment. Show all your calculations. Do not use the equal payment formula.)
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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for x=6
Transcribed Image Text:x is the last digit of your student number
1. You want to buy a new house which is sold for TL x00000 cash. The seller offers you chance to
make half of the payment now and the other half in four annual installments with an interest rate of
10%. Compute the amount of each payment. Fill in the amortization table below. (Use the factors
below to calculate the payment. Show all your calculations. Do not use the equal payment formula.)
Payment
Interest Payment
Principal Payment
Remaining Debt
Period
Interest rate Factors:
FV of Annuity 10%; 4 = 4.6410
PV of Annuity 10%; 4 = 3.1699
PV 10%; 4 = 0.6830
FV 10%; 4 1.4641
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