Today, you lent $1,000,000 to Hongyi. The two of you have agreed that Hongyi will repay...
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Today, you lent $1,000,000 to Hongyi. The two of you have agreed that Hongyi will repay you in equal monthly instalments, with the first payment in one month's time and the last payment in five years' time. Interest on the loan will be charged at 8% compounded monthly. Note: Round your answers to 2 decimal places unless stated otherwise. Also, omit commas in expressions like 10,000 etc... b. $ % What monthly payment must Hongyi make to completely repay the debt in five years' time? C. Suppose Hongyi makes the monthly payments that you calculated in (b). How much will Hongyi owe you at in three years' time, including the payment that he made in exactly three years' time? Today, you lent $1,000,000 to Hongyi. The two of you have agreed that Hongyi will repay you in equal monthly instalments, with the first payment in one month's time and the last payment in five years' time. Interest on the loan will be charged at 8% compounded monthly. Note: Round your answers to 2 decimal places unless stated otherwise. Also, omit commas in expressions like 10,000 etc... b. $ % What monthly payment must Hongyi make to completely repay the debt in five years' time? C. Suppose Hongyi makes the monthly payments that you calculated in (b). How much will Hongyi owe you at in three years' time, including the payment that he made in exactly three years' time?
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a The annual effective rate is given by the formula r 1 inn 1 where i is the nominal annual rate n i... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
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