You take out a loan for $L at i12 = 19.8 % and repay $6113 at the end of each month for as long as necessary. This loan is invested at iz = 6.47% and provides for a perpetuity due which pays the prize in the "Liar's Contest." The prize is $1100 at the end of 1st quarter and increases by $710 each quarter until it reaches $6070. From then on the prize remains $6070. Find the time of the loan. Find the amount of the final repayment on the loan.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
You take out a loan for $L at i12 = 19.8 % and repay $6113 at the end of each month for as long as necessary. This loan is invested at iz = 6.47% and provides for a perpetuity due which pays the prize in the "Liar's Contest." The prize is $1100 at the end of 1st quarter and increases by $710 each quarter until it reaches $6070. From then on the prize remains $6070.
Find the time of the loan.
Find the amount of the final repayment on the loan.
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