You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years. Fill in the table below. (Round to the nearest cent.) End of Year Principal Repayment Interest payment Remaining Balance 0 $15000 1
You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years. Fill in the table below. (Round to the nearest cent.) End of Year Principal Repayment Interest payment Remaining Balance 0 $15000 1
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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Q) You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years.
Fill in the table below. (Round to the nearest cent.)
|
End of Year |
Principal Repayment |
Interest payment |
Remaining Balance |
|---|---|---|---|
|
0 |
$15000 |
|
1 |
|
|
|
Solve this early.
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