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David buys a car priced at $4000. The company provides installment loan for the purchase: David does not need to pay right away, but has
David buys a car priced at $4000. The company provides installment loan for the purchase: David does not need to pay right away, but has to pay equal amount every month for the next 4 months.
- a) What is the name of this type of loans?
- b) If the yield to maturity of this loan is 5%, how much does David have to repay in each month?
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Environmental Economics
Authors: Stephen Smith
6th Edition
0199583587, 9780199583584
