Question
Aditya buys some furniture. He has a choice between paying $500.00 in cash or making weekly payments of $50.00 (at the end of each period)
Aditya buys some furniture. He has a choice between paying $500.00 in cash or making weekly payments of $50.00 (at the end of each period) until the furniture is paid for. The interest rate is 7.775% compounded bi-weekly.
a) How many payments will Aditya have to make if the last payment is a balloon payment?
b) What is the amount of the balloon payment?
c) What are your answers to a) and b) if he makes no payments for the first year, and then makes weekly payments (at the end of each period).
Aditya buys some furniture. He has a choice between paying $500.00 in cash or making weekly payments of $50.00 (at the end of each period) until the furniture is paid for. The interest rate is 7.775% compounded bi-weekly.
a) How many payments will Aditya have to make if the last payment is a balloon payment?
b) What is the amount of the balloon payment?
c) What are your answers to a) and b) if he makes no payments for the first year, and then makes weekly payments (at the end of each period).
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Active Value Investing Making Money In Range Bound Markets
Authors: Vitaliy N. Katsenelson
1st Edition
0470053151, 978-0470053157
