You want to borrow $36,832. You must repay the loan in 6 years in equal monthly payments and a single $3,648 payment at the end of 6 years. Interest rate is 19% nominal per year. What is the amount of each payment? (Note that the single payment at the end of the period (aka balloon payment) is in addition to the regular payment scheduled for that period)
You want to borrow $36,832. You must repay the loan in 6 years in equal monthly payments and a single $3,648 payment at the end of 6 years. Interest rate is 19% nominal per year. What is the amount of each payment? (Note that the single payment at the end of the period (aka balloon payment) is in addition to the regular payment scheduled for that period)
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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Transcribed Image Text:You want to borrow $36,832. You must repay the loan in 6 years in equal monthly payments and a
single $3,648 payment at the end of 6 years. Interest rate is 19% nominal per year.
What is the amount of each payment?
(Note that the single payment at the end of the period (aka balloon payment) is in addition to the
regular payment scheduled for that period)
ED
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