You get a $25,000 loan that you need to pay back in 20 yearly payments. You start your first payment in year 4. So no payments for the first 3 years. You still pay 20 payments. Interest rate is 6%. Calculate the amount of each payment. Please do not use excel. Also, include cashflow diagram if possible.
You get a $25,000 loan that you need to pay back in 20 yearly payments. You start your first payment in year 4. So no payments for the first 3 years. You still pay 20 payments. Interest rate is 6%. Calculate the amount of each payment. Please do not use excel. Also, include cashflow diagram if possible.
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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5. You get a $25,000 loan that you need to pay back in 20 yearly payments. You start your first payment in year 4. So no payments for the first 3 years. You still pay 20 payments. Interest rate is 6%. Calculate the amount of each payment.
Please do not use excel. Also, include cashflow diagram if possible.
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