Question
A loan of $ A is taken out and is to be paid off with eight annual payments of 750, first payment to be made
A loan of $A is taken out and is to be paid off with eight annual payments of 750, first payment to be made 3 years after the loan is taken out. The loan interest rate is j = 6% for the first 7-years, and j = 5% thereafter.
What is the loan amount (A)?
A.
$4,170.08
B.
$4,010.92
C.
$4,420.28
D.
$4,105.40
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Introduction To Finance Financial Management And Investment Management
Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi
1st Edition
9811239657, 978-9811239656
