You just borrowed $10,000 at a rate of (12)-8% per year and you pay $150 per month, starting in one month: a) How long do you expect to be paying the loan? b) If you paid the loan off with a balloon payment, how large would that payment be? c) If you paid the loan off with a drop payment, how large would that payment be?

You just borrowed $10,000 at a rate of (12)-8% per year and you pay $150 per month, starting in one month: a) How long do you expect to be paying the loan? b) If you paid the loan off with a balloon payment, how large would that payment be? c) If you paid the loan off with a drop payment, how large would that payment be?

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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Similar questions

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Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later (or lose a finger or two). a. What is the effective annual rate on the loan? b.
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