Question
Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the
Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the debt is due in full at once. Offer 2 is to pay back $4 comma 400
4,400 at the end of the year at an interest rate of 22
22% until Phil pays off the loan principal. Phil owes Tony $12 comma 000
12,000. How long will it take for Phil to pay off the loan if he takes offer2?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
