Question
A loan is being repaid with 30 annual payments of $1,000 each. With the 12th payment, the borrower pays an extra $800, and then repays
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A loan is being repaid with 30 annual payments of $1,000 each. With the 12th payment, the borrower pays an extra $800, and then repays the balance over 10 years with a revised annual payment, and a revised interest rate. The original interest rate is 7%. Calculate the amount of the revised annual payment, if the new interest rate is 6.5%.
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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
