Personal Finance, Student Value Edition (8th Edition) (The Pearson Series in Finance)
Personal Finance, Student Value Edition (8th Edition) (The Pearson Series in Finance)
8th Edition
ISBN: 9780134730851
Author: Arthur J. Keown
Publisher: PEARSON
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Chapter 17, Problem 7DC2
Summary Introduction

To determine:

Monthly payment of loan amount.

Introduction:

Monthly payment is the payment against the loan made on the basis of months to the loan lender.

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You want to buy equipment that is available from 2 companies. The price of the equipment is the same for both companies. Silver Research would let you make quarterly payments of $9,130 for 3 years at an interest rate of 3.27 percent per quarter. Your first payment to Silver Research would be today. Island Research would let you make monthly payments of $3,068 for 3 years at an interest rate of X percent per month. Your first payment to Island Research would be in 1 month. What is X? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percent
You want to buy equipment that is available from 2 companies. The price of the equipment is the same for both companies. Orange Technology would let you make quarterly payments of $13,650 for 8 years at an interest rate of 1.93 percent per quarter. Your first payment to Orange Technology would be in 3 months. Island Technology would let you make monthly payments of $7,976 for 4 years at an interest rate of X percent per month. Your first payment to Island Technology would be today. What is X? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percent
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