Question
. Elm Enterprises wants to borrow $12,000,000. The Fir Financial Bank requires business loans of this type to be repaid in equal installments, paid at
. Elm Enterprises wants to borrow $12,000,000. The Fir Financial Bank requires business loans of this type to be repaid in equal installments, paid at the end of each month for 25 years. If the interest rate is presented as an effective annual rate (EAR) of 4.032671%, what is the amount of each monthly payment? (Yes, it would be unusual for a bank to quote a loan interest rate this way. Be sure to carry computations out several decimal places for accuracy.)
- A. $64,233.20
- B. $63,075.69
- C. $23,475.69
- D. $63,557.09
- E. $62,868.22
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
