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(b) A loan of $10,000 is to be amortized in 10 level annual payments of $1,295.05 with an annual effective interest rate of 5%. (i)
(b) A loan of $10,000 is to be amortized in 10 level annual payments of $1,295.05 with an annual effective interest rate of 5%. (i) Find the outstanding balance immediately after 4 payments have been made using the prospective method. You may leave your answer in actuarial notation. [3] (ii) Find the outstanding balance immediately after 6 payments have been made using the retrospective method. You may leave your answer in actuarial notation. [3]
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
