Question: I need quick help , please... 5. Assume you borrow $12,000 today and promise to repay the loan in three payments, one at the end
I need quick help , please...
5. Assume you borrow $12,000 today and promise to repay the loan in three payments, one at the end of year 2, one at the end of year 3, and the other at the end of year 5, where the second payment will be half as large as the first payment, and the third payment will be equal to the second payment. (a) Draw the cash flow diagram. (b) How much would you pay as the third payment if the interest rate is 10% per year? 6. Determine the effective rate per year for the following nominal rates on the basis of the compounding period for each rate given. (a) 12% per year, compounded semiannually. (b) 16% per year, compounded quarterly. (c) 18% per year, compounded monthly. (d) 10% per 6 months, compounded weekly
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