Question
Bart and Lisa each borrow $17,000 from their father Homer. Homer and Lisa have agreed that she will repay her loan in full by paying
Bart and Lisa each borrow $17,000 from their father Homer. Homer and Lisa have agreed that she will repay her loan in full by paying $4,000 in two years and $15,000 in four years. Bart prefers to make the same payment of $
X in two and four years to fully repay his loan. Determine X so that Bart and Lisa have the same effective interest rate (Round your answer to the nearest cent.)
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Issues In Management Accounting
Authors: Trevor Hopper, Robert W. Scapens, Deryl Northcott
3rd Edition
0273702572, 978-0273702573
