Question
1. You borrow $80,000 and repay the loan with 12 equal annual payments. The first payment occurs one year after receipt of the $80,000 and
1. You borrow $80,000 and repay the loan with 12 equal annual payments. The first payment occurs one year after receipt of the $80,000 and you pay 8% annual compound interest. Solve for the payment size.
What is the payment size when interest is 12% compounded monthly, and monthly payments are made over 12 years?
What is the payment size when interest is 12% compounded semiannually, and annual payments are made over 6 years?
What is the payment size when the first payment is not made until 10 years after receipt of the $80,000?
How much of the 2nd payment will be interest?
How much of the 2nd payment will be principal?
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The Leverage Space Trading Model
Authors: Ralph Vince
1st Edition
0470455950, 978-0470455951
