Question
The quarterly payment on a 15?year construction loan is $1867.50. The loans interest rate is a 6.40% annual percentage rate (APR) and payments are
The quarterly payment on a 15?year construction loan is $1867.50. The loan’s interest rate is a 6.40%
annual percentage rate (APR) and payments are end of quarter. (a) What is the builder’s loan amount? (b)
What is the loan’s effective annual rate (EAR)? (c) What will the loan balance be immediately after the 39th
payment is made?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To calculate the builders loan amount we need to use the formula for present value of an annuity L...
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Step: 2
Step: 3
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
