Question
A person borrows $180 that he must repay in a lump sum no more than 10 years from now. The interest rate is 6.2% annually
A person borrows $180 that he must repay in a lump sum no more than 10 years from now. The interest rate is 6.2% annually compounded. The borrower can repay the loan at the end of any earlier year with no prepayment penalty.
How much would the borrower have to repay after 5 years?
Group of answer choices
$328.49
$344.29
$203.01
$243.16
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
