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Jeff borrows $15,000 from Hannah and agrees to repay with 12 installments payable half-yearly. The effective interest rate is 6.09% per annum. When the
Jeff borrows $15,000 from Hannah and agrees to repay with 12 installments payable half-yearly. The effective interest rate is 6.09% per annum. When the 6th payment is due (but not made), Jeff repays the outstanding loan balance by a lump sum. (a) Calculate the lump sum payment of Jeff. (b) Calculate the loss of interest income of Hannah. Solve by hand.
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International Financial Reporting and Analysis
Authors: David Alexander, Anne Britton, Ann Jorissen
5th edition
978-1408032282, 1408032287, 978-1408075012
