A loan of $87,100 is due 10 years from today. The borrower wants to make annual...
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A loan of $87,100 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking that will earn compound interest at an annual rate of 10 percent. Required: o. What will the annual payments have to be? Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. b. Suppose the investor makes the payments monthly instead. How much would they need to pay each month? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. e. If payment was made by making monthly payments with monthly compounding then how less they will pay in a year? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. a Annual payment b Monthly payment c. Difference in annual payment per year per month per year A loan of $87,100 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking that will earn compound interest at an annual rate of 10 percent. Required: o. What will the annual payments have to be? Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. b. Suppose the investor makes the payments monthly instead. How much would they need to pay each month? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. e. If payment was made by making monthly payments with monthly compounding then how less they will pay in a year? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. a Annual payment b Monthly payment c. Difference in annual payment per year per month per year
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Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
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