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please help me to answer this question asap 3. A loan of 10,000 is to be repaid by 10 annual payments of 1000 of principal,
please help me to answer this question asap
3. A loan of 10,000 is to be repaid by 10 annual payments of 1000 of principal, starting one year after the loan, plus periodic payments of interest on the outstanding balance. Find the total amount of interest paid in each of the following cases. a. Annual interest payments at effective annual rate of interest 12.550881% b. Semi-annual interest payments at effective 6-month rate of 6.09% c. Quarterly interest payments at effective 3-month rate of 3% Show that at rate i(4) 12% the present values on the loan issue date of the interest payments in each of cases (a), (b) and (c) are equal. Explain why this is so. 3. A loan of 10,000 is to be repaid by 10 annual payments of 1000 of principal, starting one year after the loan, plus periodic payments of interest on the outstanding balance. Find the total amount of interest paid in each of the following cases. a. Annual interest payments at effective annual rate of interest 12.550881% b. Semi-annual interest payments at effective 6-month rate of 6.09% c. Quarterly interest payments at effective 3-month rate of 3% Show that at rate i(4) 12% the present values on the loan issue date of the interest payments in each of cases (a), (b) and (c) are equal. Explain why this is soStep by Step Solution
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