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2. 9 pts) A loan of $20,000 is being paid by regular payments of $1,000 at the end of cach six-month period and a
2. 9 pts) A loan of $20,000 is being paid by regular payments of $1,000 at the end of cach six-month period and a smaller final payment (drop payment) made half a year after the last regular payment. The interest rate for the loan is a nominal interest rate of 6% convertible semiannually. (a) Find the number of regular payments. (b) Find the amount of the final payment. (c) Find the outstanding loan balance immediately after the the 5th payment.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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