Question
Gloria borrows 100,000 to be repaid over 30 years. You are given: (i) Her first payment is X at the end of year 1. (ii)
Gloria borrows 100,000 to be repaid over 30 years. You are given:
(i) Her first payment is X at the end of year 1.
(ii) Her payments increase at the rate of 100 per year for the next 19 years and remain level for the following 10 years.
(iii) The effective rate of interest is 5% per annum.
Calculate X
Ans: 5505
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
