A loan for 10,000 with annual effective rate 7% must be repaid with n annual level...
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A loan for 10,000 with annual effective rate 7% must be repaid with n annual level payments of 1,500 plus a balloon payment one year after the n-th payment. Calculate n. (Hint: n needs to be an integer) A loan for 10,000 with annual effective rate 7% must be repaid with n annual level payments of 1,500 plus a balloon payment one year after the n-th payment. Calculate n. (Hint: n needs to be an integer)
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Answer rating: 100% (QA)
We can use the present value formula for an annuity to solve for the number of payments n that need ... View the full answer
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
Posted Date:
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