Question
If you were to borrow $8,600 over five years at 0.13 compounded monthly, what would be your monthly payment? Using this equation? First, calculate Present
If you were to borrow $8,600 over five years at 0.13 compounded monthly, what would be your monthly payment?
Using this equation?
First, calculate Present value factor = 1/(1+i)n
Next, calculate the PV annuity factor = 1 - Present Value Factor/ i
Lastly, solve by dividing CF by the PV annuity factor.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
