Armstrong Fisheries took out a $400,000 loan. Clyde Armstrong wants to know the semiannual payment for the

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Armstrong Fisheries took out a $400,000 loan.

Clyde Armstrong wants to know the semiannual payment for the next 10 years at the loan interest rate of 8% per year compounded quarterly.

a. Construct the cash flow diagram and indicate the compounding period and payment period.

What is the compounding frequency for the quoted loan rate?

b. What are the effective interest rate and n value that must be in the (AP,i%,n) factor to find the semiannual payment?

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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Oct 26, 2024 07:00 AM

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Armstrong Fisheries took out a $400,000 loan. Clyde Armstrong wants to know the semiannual payment for the

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Basics Of Engineering Economy

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