You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with quarterly compounding. You believe you can make a quarterly payment of $300. How many years will it take you to pay off the loan?

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
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You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with quarterly compounding. You believe you can make a quarterly payment of $300. How many years will it take you to pay off the loan? 

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A study that proves that the future worth of the money is lower than its current value due to several factors is term as the TVM (time value of money).

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