Question
There is an investment of $1,800 and someone plans to pay $110 at the end of each year with the annual interest rate is 7%.
There is an investment of $1,800 and someone plans to pay $110 at the end of each year with the annual interest rate is 7%. Try to determine the times of the regular payments and the last smaller payment under the assumption that the smaller payments are:
i) Payment is made on the date of the last regular payment.
ii) One year after the last regular payment.
iii) If he wants to repay the rest of the loan at the end of fifth year. How much does he need to repay in addition to the monthly repayment amount?
110 is yearly
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
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