Do step by step do not solve on excel You are about to begin your last year of college, in 12 months you will be a graduate engineer. You havestudied hard the last three years and now intend to "have some fun" this last year. You know that yourGrandpa will give you a fat check at your graduation, but you need some money now for the fun youplan to have, so you ask your "friend" Billy to lend you $2,000 which you will pay back in 13 months. Billyagrees to lend you the money but wants to charge an APR of 25% to be compounded monthly.1. How much will the availability of the $2,000 for 13 months cost? How much you will have to payback at the end of the 13th month?2. Show the cash flow of this transaction3. Show the distribution of debt over the 13 months period

Loan = 2,000 Time Period (N) = 13 months Interest Rate = 25%/12 = 2.083% per month

Answered: You are about to begin your last year…

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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