Question
A bank makes a loan on 01/01/2010 with the following payments: 06/30/2010 - $2,300,000 12/31/2010 - $1,300,000 06/30/2011 - $5,700,000 12/31/2011 - $3,400,000 06/30/2012 -
A bank makes a loan on 01/01/2010 with the following payments:
06/30/2010 - $2,300,000
12/31/2010 - $1,300,000
06/30/2011 - $5,700,000
12/31/2011 - $3,400,000
06/30/2012 - $360,000
12/31/2012 - $560,000
At an annual rate of return of 3.80%, what is the amount of the original loan (present value)?
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
