Question
An $8,000 loan calls for simple interest payments of 9 percent per year. Repayment of principal and all accumulated interest is to be made at
An $8,000 loan calls for simple interest payments of 9 percent per year. Repayment of principal and all accumulated interest is to be made at the end of year 4. What amount needs to be repaid? _______________________
(b) Assume the same loan as under (a), but with interest now compounded annually. How much needs to be repaid at the end of year 4?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
