9. A 10-year loan with an annual effective interest rate of 5% per year for X...

 

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9. A 10-year loan with an annual effective interest rate of 5% per year for X is taken out by Joe. Joe fully repays the loan using the following schedule of payments. (i) (ii) (iii) 100 at the end of the second year 200 at the end of the fourth year 300 at the end of the sixth year (iv) 400 at the end of the eighth year (v) 500 at the end of the tenth year Calculate X. Round your answer to the nearest whole number. Answer: 9. A 10-year loan with an annual effective interest rate of 5% per year for X is taken out by Joe. Joe fully repays the loan using the following schedule of payments. (i) (ii) (iii) 100 at the end of the second year 200 at the end of the fourth year 300 at the end of the sixth year (iv) 400 at the end of the eighth year (v) 500 at the end of the tenth year Calculate X. Round your answer to the nearest whole number. Answer:

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To calculate the value of X in this scenario we can use the concept of present value of future cash ... View the full answer