Question
Peter took out a loan of $54,000 with an interest rate of 6.25% compounded quarterly and demanded to make payments of $450 at the end
Peter took out a loan of $54,000 with an interest rate of 6.25% compounded quarterly and demanded to make payments of $450 at the end of each month. This is worth 3 marks if all entries are correct. (N, I/Y, PV, FV, PMT, C/Y, P/Y)
a) How many payments will it take Peter to pay back his loan? (4 marks)
b) How many years and months will it take Peter to pay off his loan? (2 marks)
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
