Question
A 15-year loan of L is repaid by the amortization method with payments of $1000 at the end of each year. The annual effective interest
A 15-year loan of L is repaid by the amortization method with payments of $1000 at the end of each year.
The annual effective interest rate is i.
The total amount of interest paid during the life of the loan is also equal to L.
Calculate the amount of interest paid during the first year of the loan.
[Answer to the nearest dollar.]
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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
