Question
A construction loan requires you to repay $1,200,000 over 6 years at an interest rate of 5%. Interest is compounded annually, and you are to
A construction loan requires you to repay $1,200,000 over 6 years at an interest rate of 5%. Interest is compounded annually, and you are to make one payment at the end of each year for one sixth of the principle plus any interest owed.
if you assume an inflation rate of 3%, what is the Net Present Value of your principal and interest payments at the end of 6 years?
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Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice
Authors: Donald Van Deventer, Kenji Imai, Mark Mesler
3rd Edition
1547416157, 9781547416158
