Question
The owner of a hotel borrowed $13 000 at 7.8% compounded semi-annually and agreed to repay the loan by making payments of $750 at the
The owner of a hotel borrowed $13 000 at 7.8% compounded semi-annually and agreed to
repay the loan by making payments of $750 at the end of every 4 months.
a) How much payments will be needed to repay the loan?
b) How much will be owed at the end of 6 years?
c) By the end of 6 years of payments, what is the total interest payed?
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
