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A loan of $3000 is taken out today and is due in 3 years with interest at j4 = 10%. Suppose instead that the
A loan of $3000 is taken out today and is due in 3 years with interest at j4 = 10%. Suppose instead that the loan is to be repaid with 2 equal payments, the first at the end of 1 year and the second at the end of 2 years. If money is worth j2 = 6%, what are the 2 payments? che
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To calculate the two equal payments we need to use the concept of present value which represents the ...
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
10th Edition
9780073530734, 77404890, 73530735, 978-0077404895
