Question
John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 10 equal annual payments.
John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 10 equal annual payments. What is the principal outstanding after the first loan payment?
- $143,555
- $134,560
- $141,200
- $138,620
Step by Step Solution
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Step: 1
Calculate yearly payments Present value Yearly payments 1 R n Thus yearly Paym...
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Step: 2
Step: 3
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Money Banking And The Financial System
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
3rd Edition
134524063, 9780134524573, 978-0134524061
