Question
You owe your parents $18,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 4 years from
You owe your parents $18,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 4 years from today and the other in 6 years from today. If the interest rate is 9.8% per annum compounding monthly, what will be the amount of each repayment?
a. $14592
b. $26597
c. $32330
d. $26163
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
