You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with
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Question:
You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 8 equal annual payment. Let us assume the first payment happen at the end of each year.
(a) how much is the annual payment?
b) You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 8 equal annual payment - How much is the interest payment for year 3?
c) You borrow $10,000 today with the interest rate 7%, and you plan to pay the bank back with 8 equal annual payments. - How much is the balance of the principle at the end of year 8?
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date: