Question
The original quarterly repayment amount using the formula for a fixed installment loan: Original loan amount (P) = N$1,500,000 Interest rate per year (r) =
The original quarterly repayment amount using the formula for a fixed installment loan:
- Original loan amount (P) = N$1,500,000
- Interest rate per year (r) = 8% = 0.08
- Interest rate per quarter (i) = 8% / 4 = 0.08 / 4 = 0.02
By how much will the quarterly repayments of Mr Vries be reduced?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
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