Question
A debt of $33,000 is repaid over 9 years with payments occurring semi-annually. Interest is 12% compounded quarterly. (a) What is the size of the
A debt of $33,000 is repaid over 9 years with payments occurring semi-annually. Interest is 12% compounded quarterly.
(a) What is the size of the periodic payment?
(b) What is the outstanding principal after payment 9?
(c) What is the interest paid on payment 10?
(d) How much principal is repaid in payment 10?
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Introductory Econometrics For Finance
Authors: Chris Brooks
4th Edition
110843682X, 9781108436823
