Question
Bruce Jones intends to purchase a home unit and needs to borrow money from the bank. Details of the loan are as follows: Loan Amount
Bruce Jones intends to purchase a home unit and needs to borrow money from the bank.
Details of the loan are as follows:
Loan Amount $714,000
Term (years) 20
Annual Interest Rate 6.00%
The loan is repaid using Monthly instalments.
At the end of the ninth year of the loan, just after paying the 108th instalment due at that time, Bruce has a windfall and is considering paying out the loan.
Required:
How much money would be required to discharge the loan at the end of the 9th year?(please use excel)
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
