You agree to make payments on student loans. Starting on the 8th month, 11 payments will be for $673.59 each month. Then after a break of not paying anything, you will start paying on the 36th month, 32 payments of $503.48 each. The interest rate is 1.39%. The bank offers to discount 7% of your balance if you pay it all upfront now. How much would you have to pay now in order to take advantage of the discount
You agree to make payments on student loans. Starting on the 8th month, 11 payments will be for $673.59 each month. Then after a break of not paying anything, you will start paying on the 36th month, 32 payments of $503.48 each. The interest rate is 1.39%. The bank offers to discount 7% of your balance if you pay it all upfront now. How much would you have to pay now in order to take advantage of the discount
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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Transcribed Image Text:You agree to make payments on student
loans. Starting on the 8th month, 11
payments will be for $673.59 each month.
Then after a break of not paying anything,
you will start paying on the 36th month, 32
payments of $503.48 each. The interest rate
is 1.39%. The bank offers to discount 7% of
your balance if you pay it all upfront now.
How much would you have to pay now in
order to take advantage of the discount
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