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19 marks] On May 06, 2021, Mr. Broke obtained a bank loan of $13,000 at 5% compounded semi-annually. Mr. Broke will repay the loan by

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19 marks] On May 06, 2021, Mr. Broke obtained a bank loan of $13,000 at 5% compounded semi-annually. Mr. Broke will repay the loan by making semi-annual payments of $1,208 followed by a drop payment. His first serni-annual payment will be on November 06, 2026. a. The loan agreement includes 17 regular payments of $1.208 followed by a drop payment Draw a time diagram that depicts the loan (including the drop payment). Be sure to include proper dates (month day, year, for example May 06, 2021). Specifically include dates for the last regular payment and the drop payment b. Clearly indicate a focal date of your choosing and state the equation of value needed to determine the drop payment. The equation of value must be written solely based on ideas from up to chapter 2 only (time value of money). The equation of value may contain ..."as you are not expected to write out each of the terms. At the minimum, you should include the first and last two terms in order to demonstrate the patter). Finally, your sum must not include short forms such as oran: c: Use the equation for the sum of terms of a geometric progression 11 to simplify the equation of value you determined in part (b) and calculate the drop payment. (), 19 marks] On May 06, 2021, Mr. Broke obtained a bank loan of $13,000 at 5% compounded semi-annually. Mr. Broke will repay the loan by making semi-annual payments of $1,208 followed by a drop payment. His first serni-annual payment will be on November 06, 2026. a. The loan agreement includes 17 regular payments of $1.208 followed by a drop payment Draw a time diagram that depicts the loan (including the drop payment). Be sure to include proper dates (month day, year, for example May 06, 2021). Specifically include dates for the last regular payment and the drop payment b. Clearly indicate a focal date of your choosing and state the equation of value needed to determine the drop payment. The equation of value must be written solely based on ideas from up to chapter 2 only (time value of money). The equation of value may contain ..."as you are not expected to write out each of the terms. At the minimum, you should include the first and last two terms in order to demonstrate the patter). Finally, your sum must not include short forms such as oran: c: Use the equation for the sum of terms of a geometric progression 11 to simplify the equation of value you determined in part (b) and calculate the drop payment. ()

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