Question
Sally buys a sofa priced at $2000. The furniture store provides installment loan for the purchase: Sally does not need to pay right away, but
Sally buys a sofa priced at $2000. The furniture store provides installment loan for the purchase: Sally does not need to pay right away, but has to pay equal amount every month for the next 4 months.
a) What is the name of this type of loans?
b) If the yield to maturity of this loan is 5%, how much does Sally have to repay in each month?
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
