11. Iggy borrows X for 12 years at an annual effective rate of 7%. If he...
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11. Iggy borrows X for 12 years at an annual effective rate of 7%. If he pays the principal and accumulated interest in one lump sum at the end of 12 years, he would pay 911.88 more in interest than if he repaid the loan with 12 level payments at the end of each year. Calculate X. 11. Iggy borrows X for 12 years at an annual effective rate of 7%. If he pays the principal and accumulated interest in one lump sum at the end of 12 years, he would pay 911.88 more in interest than if he repaid the loan with 12 level payments at the end of each year. Calculate X.
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We can use the formula for the present value of an annuity to calculate the lump sum payment at th... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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