Question
The WeLoveFinance Company borrows $150,000 today to be repaid in equal end-of-year payments over 4 years. The loan has an interest rate of 7%/year. a)
The WeLoveFinance Company borrows $150,000 today to be repaid in equal end-of-year payments over 4 years. The loan has an interest rate of 7%/year.
a) (6 points) What is the equal payment at the end of each of the 4 years?SHOW ALL WORK using the time value of money buttons on the TI BAII Plus Calculator for full credit.
b) (3 points) Using the AMORT function on the calculator, what is the loan balance at the end of year 2?Show all buttons including P1 and P2.
c) (2 points) What is the total interest expense paid in the first 2 years?Show P1 and P2.
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
